by Helen Geraghty

Builders of Kent developments have welcomed tough action to help young people own their own home.

The developers were speaking after the government launched a scheme to underwrite mortgages worth hundreds of millions of pounds for new homes.

Under the new scheme, the government will underwrite a percentage of loans on new property - meaning buyers will not have to raise such a large deposit.

Also announced was the £400 million 'Get Britain Building' fund, which it is hoped will pay for the building of up to 16,000 homes.

Tina Dedman, sales & marketing director for Berkeley, whose developments include Victory Pier, Gillingham and Holborough Lakes, near Maidstone, said: "The lack of mortgage finance for those with a small deposit has restricted the ability of prospective buyers wishing to become home owners.

"The upside of this has been a boom in the rental market and an increase in rental prices, further restricting prospective purchasers' ability to save enough money for a deposit to buy their first home.

"Hopefully this new government initiative will help give many first time buyers the financial boost they need to finally get their foot on the property ladder."

Edward Owens, managing director of Persimmon Homes South East, which has developments at Ramsgate, Sheerness, Ashford and Gillingham, said: "We wholeheartedly support the government announcement regarding plans to kick-start the housing industry.

"The Prime Minister's proposals regarding taxpayers' underwriting mortgages totalling hundreds of millions of pounds is a radical idea and one which we believe will help first time buyers across the country make the move into their own accommodation and even support existing home owners who so far, have been unable to trade up.

"We also welcome the £400m subsidy for the construction of 16,000 new homes to property developers as part of the 'Get Britain Building Fund'.

Not only will this bring about much-needed new housing, earmarked as one of the Government's economic priorities, but it will also create thousands of jobs which will come as a boost to the South East economy.

"We recognise just how important first time buyers are in sustaining the property market. We, along with the rest of the construction industry, look forward to seeing the impact these positive measures should make."