Muslim housebuyers can take advantage of the Help to Buy scheme, after ministers launched a version that is compliant with Sharia law.
Help to Buy can now be used by providers of Home Purchase Plans (HPPs), which are Sharia law-compliant alternatives to mortgages, often known as Islamic mortgages.
New legislation published yesterday (February 11th) enables banks that sell HPPs to purchase a government guarantee for them. In addition, the Islamic Bank of Britain has stated its intention to participate to offer HPPs under Help to Buy.
This provides good news to Muslims who felt unable to use the government’s flagship housing policy because of their religious beliefs.
Financial secretary to the Treasury Sajid Javid said: “I am delighted HPPs will now be available under the Help to Buy scheme. This gives even more choice to hardworking families across the UK trying to fulfil their home-owning aspirations.”
The housing scheme has faced mixed reactions since its inception. While many have praised it for helping to increase housebuilding rates, some are worried it is fuelling a housing bubble in London and the south-east.