Bid to provide more housing help

The Government has amended the Housing Bill in a bid to help more people get on to the property ladder, it has emerged.

The Housing and Regeneration Bill was amended on Thursday to include a definition of Community Land Trusts.

Community Land Trusts are independent trusts that own and control land. They were introduced to cut the cost of homeownership by enabling people to buy a property but not the land it stood on.

Land costs can account for up to 40% of a home's purchase price, so removing them from the equation can reduce the cost of buying the average home from around £225,000 to as little as £135,000.

But the Government was concerned that the trusts were not working well and that there was a lot of confusion surrounding them, so it has amended the bill to include a definition of them.

Housing Minister Iain Wright said: "We have to constantly look at new ways to meet the long-term demand for more homes. Community Land Trusts put local communities at the centre stage of delivering the homes our first-time buyers and young families desperately need.

"They provide an opportunity to give people the practical tools to solve the problem of affordable housing in a way that is right for the community."

The latest measure is part of the Government's initiative to alleviate the current problems in the housing market and help more people get on to the property ladder.

Earlier this week it announced a pilot scheme under which families earning less than £60,000 a year will be able to rent a home at a discounted rate while they save for a deposit to buy the property.