Government to 'unveil plans to include housing benefit in mortgage affordability'

According to reporting by The Times, prime minister Boris Johnson is set to announce plans to allow homebuyers on lower wages to include housing benefit in their mortgage affordability calculations.

Related topics:  Mortgages,  housing benefit
Amy Loddington
8th June 2022
boris johnson
"Johnson will use the speech to announce a review of the mortgage market in order to explore how to reduce the required deposits for mortgages"

Johnson is expected to unveil the plan during a speech in Blackpool, Lancashire on Thursday (9th June), during which he is set to suggest that rules for assessing mortgage affordability should be changed to allow housing benefit - currently amounting to £30 million per year - to be included in mortgage affordability plans.

It is expected that he will also announce that eligibility rules will be changed to allow homeowners to receive housing benefit: currently, those with a mortgage are unable to receive housing benefit to top up low wages or benefits, or during unemployment, although some homeowners are eligible for Support for Mortgage Interest (SMI) payments.

According to The Times, Johnson will use the speech to announce a review of the mortgage market in order to explore how to reduce the required deposits for mortgages - which ministers say will help the more than 50% of private renters who could afford monthly mortgage repayments but are hindered by a lack of savings to pay upfront for a deposit.

The announcement is expected to include a rumoured extension to 'right to buy' rules, giving thousands of households in housing association properties the right to purchase their home at a discounted price.

This article will be updated following Johnson's announcement.

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