MORE than 500 first-time buyers in Notts could be helped to buy their homes thanks to a £15 million scheme.
Notts County Council has set the money aside to help people who want to get on the property ladder.
Under the scheme it will loan people money for their deposits – if they can stump up the first 5% of it.
It is capped at houses priced at £150,000 or less and people must pay back the money within five years.
The money comes from the council's reserve funds.
The loans are being arranged in conjunction with Lloyds TSB and it is not yet known what interest rate they would attract.
The scheme has been welcomed by estate agents and prospective first-time buyers.
Brian Maguire, 26, rents a property in Musters Road, West Bridgford, with his wife Claire, 25.
"Getting the money together for a deposit on a house is getting harder and harder," he said.
"Both me and Claire work, but a lot of our money goes on rent, food and bills so this scheme would be helpful."
Kirsty Keeton, manager at Richard Watkinson and Partners Estate Agents, which has office across Notts, said: "Many first-time buyers simply don't have 20-25 per cent deposits in the current climate and unless they can access alternative funding, such as family help, they stand little chance of ever being able to save the sums required."
Councillor Reg Adair, chairman of the council's finance and property committee is due to announce details of the scheme today.
He said: "This is a fantastic scheme that the county council can deliver at no cost.
"As well as putting a home within reach of around 500 first time buyers for the first time, the positive effects of getting the housing market moving will be of huge benefit to the wider Nottinghamshire economy."
However, the leader of the opposition has questioned the Tory-run council's priorities when frontline services are being "decimated." Labour leader Alan Rhodes said: "It is vital that we stimulate economic growth and we fully understand the difficulties and challenges first time buyers face.
"However, we strongly believe that the Government should be putting pressure on the banks to offer affordable mortgages, especially those banks that are publicly owned and continue to announce enormous profits."
Martin Sleath, joint branch secretary for Notts Unison: "This could be construed as something of a political bribe, given that we are only six months from the election.
"Even though the council will see the money coming back in five years time, it is needed now to protect frontline services and jobs."
Robert Oxley from the Taxpayers' Alliance said: "Councils shouldn't gamble taxpayers' money trying to prop up the housing market."
The scheme is expected to be launched early next year.
Do you think the county council is right to set aside the money to help first-time homeowners? Call 0115 9051962, e-mail alexander.britton@nottinghampostgroup.co.uk or tweet @adbritton.
