Proposed by Councillor Alan Brighouse

Seconded by Councillor Stuart Kelly

(1)  Council welcomes the recent Coalition Government announcement to support first time buyers through the introduction of government supported 95% mortgages as part of a strategy to tackle housing shortage, boost the economy, create jobs and get more people on to the housing ladder.

(2)  Council notes that, under this new mortgage indemnity scheme, the Government will underwrite a percentage of each loan on newly built property, meaning buyers will not have to raise as much towards a deposit.

(3)  Council also notes that this scheme sounds very similar to the ‘Lend a Hand’ local authority mortgage scheme referenced in the Notice of Motion “Mortgage Support for First Time Buyers”, aimed at first time buyers finding it difficult to raise the 20-25% deposit needed to obtain an affordable mortgage interest rate and agreed unanimously at Full Council on 18th April 2011 (Minute 118).

(4)  Council agreed that this scheme had the potential to support housing markets in areas at risk of housing market failure, stimulating the local housing market and benefiting the wider local economy

(5)  Council is reminded that the Director of Finance was instructed to bring forward a report reviewing the impact of the ‘Lend a Hand’ local authority mortgage scheme and any lessons that would need to be learnt prior to the implementation of such a scheme in Wirral.

(6)  Given that the Government continues to endorse the principle of public sector backed top up mortgages, the Economy and Regeneration OSC is urged to request a report from the Acting Director of Regeneration, Housing and Planning on how Wirral can be at the vanguard of any implementation plan of the Government’s scheme.

Amendment submitted in accordance with Standing Order 7(2)

Proposed by Councillor George Davies

Seconded by Councillor Pat Hackett

Add the following:

(7)  Council welcomes and supports this scheme which will add to the tools available to allow people more options to access home ownership in the current challenging climate.

(8)  Council recognises that this is an opportunity to boost the local housing market by supporting access to home ownership and employment opportunities.

(9)  Council believes it will enable greater choice when offered alongside our original intended scheme, which is to support access to mortgages for first time buyers to purchase from the existing stock in the borough.

Having applied the guillotine in accordance with Standing Order 7(8) the Council did not debate this matter.

The mover of the motion agreed to accept the amendment and the motion, as amended, was put and it was -

Resolved (64:0) (One abstention) –

(1)  Council welcomes the recent Coalition Government announcement to support first time buyers through the introduction of government supported 95% mortgages as part of a strategy to tackle housing shortage, boost the economy, create jobs and get more people on to the housing ladder.

(2)  Council notes that, under this new mortgage indemnity scheme, the Government will underwrite a percentage of each loan on newly built property, meaning buyers will not have to raise as much towards a deposit.

(3)  Council also notes that this scheme sounds very similar to the ‘Lend a Hand’ local authority mortgage scheme referenced in the Notice of Motion “Mortgage Support for First Time Buyers”, aimed at first time buyers finding it difficult to raise the 20-25% deposit needed to obtain an affordable mortgage interest rate and agreed unanimously at Full Council on 18th April 2011 (Minute 118).

(4)  Council agreed that this scheme had the potential to support housing markets in areas at risk of housing market failure, stimulating the local housing market and benefiting the wider local economy

(5)  Council is reminded that the Director of Finance was instructed to bring forward a report reviewing the impact of the ‘Lend a Hand’ local authority mortgage scheme and any lessons that would need to be learnt prior to the implementation of such a scheme in Wirral.

(6)  Given that the Government continues to endorse the principle of public sector backed top up mortgages, the Economy and Regeneration OSC is urged to request a report from the Acting Director of Regeneration, Housing and Planning on how Wirral can be at the vanguard of any implementation plan of the Government’s scheme.

(7)  Council welcomes and supports this scheme which will add to the tools available to allow people more options to access home ownership in the current challenging climate.

(8)  Council recognises that this is an opportunity to boost the local housing market by supporting access to home ownership and employment opportunities.

(9)  Council believes it will enable greater choice when offered alongside our original intended scheme, which is to support access to mortgages for first time buyers to purchase from the existing stock in the borough.