The Queen’s speech is set for Wednesday and is due to contain important information for hopeful homebuyers as well as homeowners. An extension to the right to buy scheme will allow 1.3 million housing association tenants the opportunity to buy their homes with a discount.  There have been critics of the scheme meant to get more into their homes but this course is said to give families the opportunity to own their home and for new ones to be built to replace those sold.

Because the program requires housing associations to offer tenants their homes below market rates, it is estimated it will cost the National Housing Federation up to £5.8 billion.

The discount for a tenant could be worth 35% of market value for the home after they have been in it for three years. The discount rises 1% for every extra year they are in the home renting it through the public housing sector. If the property is a flat, the discount could be worth up to 50% of the market value after three years with it rising 2% each year afterwards that the tenant is in the flat.

The proceeds are to be used to build cheaper properties for further housing.

There is also a pledge to build 200,000 starter homes that will be available to first time buyers under the age of 40 with a 20% discount of market value.

This scheme has the potential to help more than a million people onto the UK property ladder.

There has been no discussion as to what plans will be put into place to help these homebuyers remortgage their homes further down the road. This could be critical once interest rates begin to rise.

Brandon Lewis, housing minister, said, “Anyone who works hard and wants to get on the property ladder should have the opportunity to do so, which is why the Queen’s speech will include measures so a million more people have the chance to do that.

“And with housing starts at their highest since 2007, we’ll take steps that will get workers on sites and keep the country building.”

Homeowners will reap the benefits of growing equity in their properties as this is expected to further boost the average house prices in communities inside as well as outside of London.