Earlier this year the Government recognised the need to inform and reassure people that help is available to get, and keep them on the housing ladder. In February they launched the ‘Real Help Now’ campaign to generate awareness of the different types of housing initiatives on offer, one of which was My Choice Home Buy scheme.

At the outset it seemed that this initiative would be ideal for first time buyers as it allowed them to find a place on the open market and gain 100% funding for the property. The scheme worked on the basis that the individual would be able to take an equity loan of between 15-50% of the property value from the housing association while the remainder would come from a conventional mortgage.

In practise, due to the popularity of the initiative coupled by the £126 million budget in 2009-2010, many individuals are being disappointed. According to news sources, one of the largest housing associations had around 15,000 applications alone. Others associations suggest that there have been lengthy delays in getting the funds required to support approved applications.

This is having a knock-on effect on the wider property market as many deals are having to be put on hold while buyers wait and see if their application is accepted. One of the main reported reasons for the delays is the fact that associations expected more money to be allocated to this scheme in the current budget, which did not materialise. As a result, many are faced with the prospect of not being able to afford the home they intended to purchase.