Proposals to open up Manx first-time buyer schemes to more people

The current schemes came into force in 2014

Changes to Manx first-time buyers schemes would provide a "short-term solution" to getting people onto the property ladder, a minister has said.

Under the proposals, the threshold for maximum earnings and property prices would increase to match wage increases and rising building costs.

Limitations on price and type of home would also be removed in some cases.

Infrastructure Minister Chris Thomas said the changes would open the schemes up while a wider review takes place.

The changes, which will be debated by Tynwald members in July, would amend the government's shared equity schemes.

While the Shared Equity Purchase Assistance (First Home Fixed) Scheme allows people to buy designated first-time buyer properties, the Shared Equity Purchase Assistance (First Home Choice) Scheme allows for properties to be bought on the open market.

'Fundamental review'

Under the fixed scheme, the maximum income to be eligible would increase from between £30,000 for a single person and £50,000 for a family, to £33,000 and £55,000 respectively.

The maximum price of a property eligible for the same scheme would rise from £160,000 to £185,000.

The maximum income threshold for the choice scheme would rise from between £35,000 and £60,000 to between £39,000 and £67,000.

A price limit of £190,000 for a house and a maximum of four bedrooms under that scheme would both be scrapped.

The minimum amount of government equity applied for would fall from 20% to 5%, and interest rates on the loan would also be capped at 2% lower than at present, but it would be payable from a year earlier.

Mr Thomas said the tweaks would increase flexibility and encourage more applications.

"These changes are intended to provide a short-term solution to enhance the island's offering to potential first-time buyers and some others whilst a fundamental review of shared equity and its alternatives are undertaken, as outlined in the Housing and Communities Action Plan," he added.