Changes to make home ownership 'more achievable'

Changes to government schemes that would make home ownership on the Isle of Man "more achievable for first-time buyers" have been put forward.

The proposals for updates to the First Home Fixed Scheme and First Home Choice Schemes have been outlined in a consultation and sparked discussion in Tynwald on Tuesday.

The Department of Infrastructure (DoI) said the changes would ensure affordability and access to first homes through resetting income thresholds, extending interest-free periods and diluting residency requirements for homeowners "committed to staying" on the island.

The DoI, which provides house purchase assistance, said it aimed to have changes ready by April.

Infrastructure Minister Michelle Haywood said: "Access to affordable housing is one of the most pressing issues for our community.

"These proposed changes aim to make home ownership more achievable for first-time buyers while ensuring the schemes remain fair and financially sustainable."

Other areas of the schemes the proposal seeks to amend would be allowing for cheaper house prices using "updated earnings and construction cost data" whilst also increasing assistance to equity loans.

In Tynwald, Arbory, Castletown and Malew MHK Jason Moorhouse MHK raised the question of how soon changes could be implemented.

DoI departmental member Lawrie Hooper MHK said the amendments to both schemes would seek to address "inflationary pressures and outdated income thresholds".

He said changes to the First Homes Fixed Scheme, would reset income thresholds using the latest Isle of Man median gross annual earnings of £39,780, rounded up to £40,000, for a single person household with percentage uplifts for couples and families.

Hooper also said there would be "automatic annual adjustments" to the thresholds to maintain "affordability" and avoid "ad hoc reviews" required to make approvals.

On the First Home Choice Scheme - the open market scheme - Mr Hooper said amendments would extend the interest free period on new equity loans from one year to three while increasing the maximum equity loan assistance from 30% to 40%.

Residency requirements for home ownership would be reduced from five years to one, the change hoping to "improve access to residents who've recently settled on the island".

Onchan MHK Julie Edge raised concerns over the changes to the residency requirements, arguing those who had moved to the island 12 months before, who there was "very little knowledge" about, would be able to secure a loan to buy properties with government support.

Hooper replied: "I think that's perfectly ok, especially because it's not targeting those first-time buyer properties which are the ones we're trying to keep in the long-term hands of Manx residents".

The public consultation closes on 15 January.

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