The Government has announced new plans to support the housing market, including a rent now/buy later scheme for first-time buyers…

The Government, not wanting to look as if it's fiddling while Rome burns, has announced some new measures to help the housing market along.

Probably the most significant, not least in the current market, is the new rent-to-buy scheme for first-time buyers. Other plans relate to impoving the supply of property and helping households in danger of repossession.

Here are the main points:

Rent-to-buy Scheme
Under the scheme, eligible households earning £60,000 a year or less will to able to rent a new home at a discounted rate for a period of two to three years. They will have the option to buy a part share in the home through the New Build HomeBuy Scheme.

The lower rent - 80 per cent of the market value or less - will, says the Government, enable the household to save for a deposit to buy the share in the home.

The scheme will be piloted by the Housing Corporation and then assessed to see if it is worth rolling out to housing associations.

More money to buy unsold stock from developers:
On top of the £200 million that has already been allocated to buy off unsold stock to turn into affordable housing, more money could be made available should the properties be of the right type, in the right place and offered at the right price.

The Government will not set a cap on how much money it is willing to allocate in this area.

New partnership between councils and the private sector:
Local Housing Companies make their debut today in Barking, Dagenham, Newcastle, Nottingham and Manchester. The partnership will see councils offering their surplus land to developers while maintaining a say in how it is developed.

New proposals for more homes across 20 more town and cities - basically, high demand areas which have pledged to create a total of 75,000 new homes by 2016 will receive £100 million towards new schools, hospitals and other facilities.

Rewarding councils for bringing land forward:
The Government has begun shelling out from their £510 million funding pot to reward councils for proactively working to get developments moving.

The also pledge to work with local authorities and housing associations on mortgage rescue schemes. And to support home ownership, measures will be investigated at a local level, designed to assist those struggling to be housed.

A new leaflet by the Housing Advisory Service:
It will contain up-to-date contact details of major national money, debt and legal advice agencies and will be distributed by local authorities amongst others.