Draft Queen's Speech: Aid to home buyers

Gordon Brown has announced plans to aid the homeowners and first-time buyers in today's draft Queen's Speech.

The prime minister outlined plans for what he claimed was building a fairer Britain through the current economic storm.

He said: "We will take every action necessary to help homeowners and those affected by the world economic downturn."

In housing he brought forward plans for a £200 million fund to buy social housing properties and £100 million to fund equity schemes allowing buyers to purchase on the open market.

From today, all first-time buyers with a household income of £60,000 a year or less will have the opportunity to apply to buy a share of a home, under a major expansion of the Government's Homebuy programme – previously only available for key workers.

It is claimed under the scheme household with an income of £32,000 could afford a house of £200,000, paying £760 each month - as opposed to £1,350 without the scheme.

The £200 million fund will be used to purchase homes and rent them out to those in social housing.

A new savings bill will aid those on lower incomes. To allow access to savings for eight million people, Mr Brown promised the government would boost people's savings - with £1 saved matched by the government.

Mr Brown said: "The Queen's Speech will also introduce a savings bill to help homeownership and wealth ownership generally - giving eight million people on low incomes access to a national savings scheme, with each pound saved matched by a contribution from the government."

The government will also be looking at the controversial sale-and-rent-back sector.

"We will look at whether further action is required in light of the study by the Office of Fair Trading into the sale and leaseback market and the rise in second charge mortgages to ensure consumers are treated fairly," the prime minister said.

A banking bill will also be introduced to strengthen the banking system – in a bid to provide greater confidence for consumers in the banking system to prevent a future Northern Rock crisis.

The bill brings wider guarantees for depositors – already brought in on an emergency status during the Northern Rock debacle.

"A banking bill to support financial stability," Mr Brown said.

In response, David Cameron, leader of the Tories, said the banking bill was only necessary as the regulatory system set up by Mr Brown as chancellor had failed in the Northern Rock crisis.

Mr Brown went on to promise the UK economy would not face a repeat of interest rates hitting 15 per cent, as according during the 1990s when the Conservatives were in power.

Further changes will see every worker allowed to take time off to train, along with extending flexible working rights for those with older children.