Dragon's Den first-time buyer scheme "not at all helpful"

Date:Monday 21st September 2009
Author: Max Freedman

A scheme put forward by Dragon's Den's James Caan will not be helpful to first-time buyers even if it does allow them to borrow interest-free, says an industry commentator.

Katy John, a spokesperson for PricedOut.org.uk, pointed out that it was important to get first-time buyers into the position to be able to purchase a house, but that Mr Caan's scheme would not solve any problems in the property market.

It is her opinion that the scheme would simply keep house prices up, rather than find more affordable housing that would suit people wanting to get take their first step on the property ladder.

She said: "Artificial measures to prop the market itself up are not at all helpful for first-time buyers. Instead, more needs to be done to address the underlying issues."

The issues she feels need to be looked are the taxation of multiple home ownership, sensible lending and the development of more affordable housing.

Mr Caan has joined forces with Look4AProperty.com to offer interest-free loans of up to £50,000 which can be paid off over two or three years.