Unsold stock to be bought up in affordability scheme

A total of 379 unsold homes are to be bought up through a new deal between the government and Bovis Homes.

The £18 million agreement is designed to increase the amount of affordable homes that are available, with the house builder providing the properties to housing associations.

Housing minister Margaret Beckett explained that the deal, part of the Clearing House Programme, is intended to help families who are struggling to find a home in the current economic climate.

The scheme has seen a total of 4,800 unsold properties being bought by the government, with spending on the scheme amounting to £160 million.

Ms Beckett remarked: "This is one part of a range of measures we are taking to help ensure stability and security for those affected by the downturn."

Another potential step the government could take to help those looking to purchase property is the issuance of residential mortgage backed securities, the Royal Institution of Chartered Surveyors has suggested.