RIBBLE Valley Tory leader Michael Ranson has warned Chancellor George Osborne to ensure his Budget initiative to help people on to the housing ladder cannot finance the purchase of second homes.
He intervened in a growing row over the scheme, due to start next January, which will provide government loan guarantees for those putting down 5% deposits.
Shadow Chancellor Ed Balls claims there is nothing to stop people using it to buy second homes and the Treasury admits parents may be allowed to use it buy homes for their children.
The Help to Buy scheme will be available for homes costing up to £600,000.
It aims to breathe new life into the housing market which has been hit by banks demanding bigger deposits from homebuyers.
Coun Ranson, whose borough is beset by applications for new housing developments with many aimed at second home owners, said: “I don’t think this is intended to be used for this purpose.
“It is a sensible scheme but Mr Osborne needs to get the detail right so it does not pay for a boom in second home purchases.
“If he gets it right it will help first-time buyers onto the housing ladder.”
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