Print friendly version 27 Aug 2010

Welsh first-time buyer grants shelved

The Welsh government has reneged on a promise to provide energy efficiency grants to first-time buyers.

The Labour-Plaid Cymru administration has quietly axed the scheme, claiming a lack of interest has been demonstrated.

The pledge to provide grants led to a pilot scheme being introduced as a compromise in the One Wales agreement to replace one of Plaid Cymru’s top seven manifesto pledges to provide cash to help first-time buyers get onto the housing ladder.

However, Deputy Housing Minister Jocelyn Davies has now revealed that the pilot has been dropped because of a reduction in demand and the economic pressure on the government.

The money earmarked for the scheme has been transferred into the mortgage rescue scheme.

Welsh Liberal Democrat housing spokesman, Peter Black, said: “At the time that this compromise was mooted Welsh Liberal Democrats argued that it was badly targeted and that it would not help a single person onto the property ladder.
 
“I believe that the fact that it has now been abandoned due to lack of demand vindicates that judgement.  This was yet another gimmick that was diverting much needed funds from core services.

"I welcome the fact that the money has now gone to help people avoid repossession and homelessness, but even the mortgage rescue scheme is in difficulty because of the overly restrictive criteria that applies to it.

"Given the current problems with the economy and the growing shortage of affordable houses to rent, the Welsh government needs to address this shortfall or else we will see a dramatic growth in homeless applications and families living in temporary accommodation.”


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