Glasgow City Council leader Gordon Matheson today pledged to transform housing in the city with two innovative new policies.

The first, reported in the Evening Times, will see the council lease unused city land to build 3500 homes for rent. The second, announced today, will see the council help first-time buyers with getting their first mortgage.

On the first scheme, Glasgow City Council has entered into agreement with Glasgow Housing Association to lease unused land in the city to build 3500 new homes for rent. The land will be leased on a long-term basis and will see new homes constructed with a wide variety of sizes and rental prices.

The second scheme will be a "First Foot" scheme whereby the council will support first time buyers who can afford mortgage payments but cannot afford the 25% deposit now typically sought by banks and building societies. The council will work with lenders to guarantee mortgage deposit so first time buyers would then pay a much smaller deposit (typically 5%) at a more favourable rate of interest. Similar ideas have been previously praised by construction firms and will be delivered if Labour wins the council election in Glasgow.

Leader of Glasgow City Council Gordon Matheson said:

"Housing in Glasgow has changed beyond recognition in my lifetime but our city needs more homes to rent and buy. The Labour council will do both. It is in our gift to use Glasgow land to help Glasgow families searching for a home. We know people are desperate to find affordable homes and Labour will do everything we can to help.

"The two schemes I am announcing today will support thousands of families and young people get a decent home in the greatest city in the world.

"Since the financial crash there are many people, especially young couples, who want to buy their first home and just need a hand up the ladder. Labour's First Foot scheme for Glasgow will offer help to those who can pay their mortgages but can't raise the massive deposits banks and building societies now demand.

"Labour has the track record of regenerating our city, and I have a vision for the future of Glasgow's housing. These announcements will not solve every problem in our city, but they will change the lives of thousands of Glaswegians. The beauty of the schemes is that they will help the struggling construction sector. That means more jobs and a real boost for the local economy.

"These are tough times for many people, but I am determined to do everything we can to put Glasgow first."

21 February 2012