Budget: Government to consider removal of 'regulatory barriers' to homeownership

The government says it is keen to engage with investors to "understand where regulatory rules or other barriers may be inhibiting the development of innovative products".

In its paper, the government says it will offer to "act as a co-funder of these proposals", which could include products such as rent to buy.

The government added that models in this area "may be particularly beneficial for households paying high rental payments which are sufficient to cover the costs of a mortgage, but are currently unable to access a sufficient mortgage to move into homeownership".

It says it is particularly interested in private shared ownership proposals where government loan funding could play an important part in removing the risk and financial uncertainty created by staircasing (buying extra shares in a shared ownership property).

However the paper stressed that proposals should not rely on government grant funding, government guarantees or developer s106 contributions.

It is also seeking proposals on other private affordable homeownership products which would be primarily privately funded.

In today's Budget, Chancellor Philip Hammond announced that the government would extend the Stamp Duty exemption for first-time buyers to shared ownership properties up to £500,000.