Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking to encourage mortgage providers to develop financial products which support shared equity affordable housing; and if he will make a statement.

The Government is committed to addressing the affordability of housing and making the aspiration of home ownership a reality for as many households as possible.

Alongside this the Government is committed to increasing competition in banking and creating an environment in which firms compete to offer a range of products that suit the varying needs of their customers.

Government also runs the Help to Buy: Equity loan through which Government lends up to 20% (40% in London) of the cost of a newly built home with buyers only needing a 5% cash deposit and a 75% mortgage to make up the rest. The loan is repaid when the property is sold, or after 25 years (whichever is sooner), with the amount repayable calculated as 20% of the value of the property at the point the loan is repaid (or 40% in London). There is also an annual fee payable on the loan after 5 years.

Since Help to Buy: equity loan launched it has helped over 90,000 households buy a home, supporting first-time buyers in all parts of the country with 81% of purchases made through the scheme made by first time buyers.

In October 2016 the Council of Mortgage Lenders (CML) released a report which highlighted that 15-20 firms are currently lending on shared ownership.