This conference calls on Her Majesty's Government to bring back first time buyers into the property market, by giving grants of 10% re-payable through mortgages. This would have the effect of boosting sales, leading to an increase in UK economic activity, such as employment and house building.

Proposed: Robin Twigge

Seconded: Margaret Farrow

Policy Respondee: Colin Willman
Region: East Anglia

The motion was not passed

Personal votes for:         48       

Personal votes against: 129

Branch votes for:           28045

Branch votes against:    100356

The debate around the conference motion highlighted the following key issues:-

Introducing the motion East Anglia Regional Chairman, Robin Twigge, pointed out that they were asking the Government to lend, rather than give a 10% grant to first time buyers, repayable through mortgages.

He felt that sufficient of our money has been given away by the Government but this scheme provide money to start people on the housing list . This will enable new houses to be built, existing houses to be sold and business to start flowing again, eg sales in curtains, carpets and decorating, work for plumbers, electricians as well as creating work for Solicitors, Estate Agents and ultimately creating more money for the government and local councils through taxation.

Margaret Farrow added that it is essential that with the help of the Government in supporting small businesses that we put all our efforts into kick-starting employment.

It is a well known fact that small businesses are adaptable, resilient and able to turn business around more quickly than the larger conglomerates.  She quoted Phil Whyman, Professor of Economics at Lancashire Business School who said
 "it is those organisations that have vision, drive and willingness to embrace change that are most likely to emerge in a healthier condition from the period of economic downturn that we now face".

Small businesses are the largest payees of taxes to the Government and I feel sure that together we can turn the country around.

Colin Willman responding for Policy said they were neutral on this motion. Normally Governments use capital projects to stimulate growth in a recession, this time they used a VAT reduction.

Points for the motion were:-

Banks are not lending to first time buyers.

First time buyers are crucial to the housing market, which in turn is crucial to stimulating the economy.

First time buyers find it very difficult to obtain funds for a deposit.

The loan could be managed in the same way as the student loan scheme whereby first time buyers would be able to repay when their income reaches a certain level.

Points against the motion were:-

People should not be advised to purchase property in an uncertain market due to danger of purchasers becoming victims of negative equity.

Opposition to taxes being put into this type of initiative with possibility of increased personal and business taxation as a result.

Lack of financial discipline by some previous house purchases had helped cause the current economic crisis.

Homebuy Direct is an existing scheme operated through housing associations and not for profit organisations to give financial support to first time buyers.

Banks could reduce the amount of funds offered for mortgages if first time buyers obtained their deposit through this scheme.

Prices became high due to demand, this scheme could lead to another major increase in house prices.

Concluding remarks:-

Robin Twigge reminded members that revitalising the housing market could benefit a wide range of small businesses including carpet and curtain retailers, electricians, plumbers and solicitors. This scheme would not just help first time buyers but kick start the economy and was in the spirit of the FSB's Keep Trade Local campaign. Robin Twigge urged members to vote for this motion.