The deputy prime minister has raised the possibility of using cash raised from extra council tax on second homes to fund an affordable homeownership scheme in the Yorkshire Dales.
In a letter to the local strategic partnership, the Upper Wensleydale Community Partnership, John Prescott backed Affordable Homes Equity, a scheme similar to the Housing Corporation-funded Homebuy project. Through the scheme, suitable low-income applicants can borrow 25% of the cost of purchasing their homes.

However, unlike Homebuy, the Yorkshire scheme aims to attract private money. The only public subsidy required is the amount needed to set up and run the scheme.

Prescott said that money raised by councils from the council tax could be used to fund the scheme's administration.

The project has already found funding from Richmondshire council, the Countryside Agency, Yorkshire Dales National Park Authority, the Joseph Rowntree Trust and the corporation. It is also aiming to attract £2m of private money.

If the Yorkshire Dales scheme is successful, similar models could be established around the country within six months.

Source

Housing Today