The Labour Party, led by Ed Miliband, intends to build 125,000 houses in the next five years, using the money raised from the Help to Buy ISA which was announced in the recent budget, if they win the election.
The Help to Buy ISA, which is for first-time buyers, will provide £5 billion to the government in the form of a Future Homes Investment Fund, and will be an integral part of Labour’s plans to build 200,000 houses each year by 2020.
The Help to Buy ISA was announced in George Osborne’s budget, and allows those who sign up to receive money from the government to help pay for a deposit on a house, as they can usually afford a mortgage, but not the deposit.
It works by allowing first-time buyers to save up to £200 each month, with the government donating £50. The maximum amount that can be received from the government in total is £3,000, and this only happens if buyers have saved a total of £12,000 in their ISA. This will therefore leave them with £15,000 to use for a deposit.
“There’s no bigger signal that our country doesn’t work for working people than young people not being able to get a start with a home of their own,” said Ed Miliband on Saturday, speaking in Warrington.
“We’re going to turn it round and build the kind of country in which we can all be proud. Investing in our future, investing in the next generation, giving hope back to young people and restoring the promise of Britain.”
He added: “Our plan is the first real plan for house building in a generation. We will build at least 200,000 homes a year by the end of the parliament.”