Government yesterday pledged to provide up to $700,000 worth of interest-free loans as down payments for first-time buyers.

Minister of Housing Senator David Burch put more detail on the scheme announced in the PLP's manifesto.

He said: "In our Bermuda of 2007 and beyond, we as a Government must help these young men and women, and by extension we can also help their parents.

"We must help them to achieve the basic aspiration of home ownership and we must not force their parents to sacrifice twice to give them that dream."

Sen. Burch said the loans would result in Bermudians no longer having to endure the "demeaning experience" of having to produce their parents' deeds as security to lenders.

The Minister also announced that Government's 'rent geared to income' policy will be incorporated into forthcoming legislation. The PLP is also considering more regulations for landlords.

"We will look at all the legislation currently on the books, not only rent control but trying to encourage landlords to return units to the rental sector," said Sen. Burch. "We will aim to address people with rental units who may have created them just to get tax benefits and then have converted them back."

In the PLP 'Patterns of Progress' election Platform — released on Sunday — the Party pledges to upgrade legislation on the Landlord/Tenant Bill of Rights. Government also has its eye on a property in Hamilton for residential and commercial mixed-use.

Sen. Burch said: "We have had some preliminary discussions and that will be coming forward if we are fortunate to be returned to Government on December 18."

Announcing the 500 interest-free loans for down payments, Sen. Burch said: "Since 1998, this Government has housed 800 Bermudian families. We have renovated the old and built new housing.

"I am proud to say that the immediate needs, what I refer to as the 'bricks and mortar', are in hand; and with the well-managed team at the Bermuda Housing Corporation, in concert with our private sector partners, we are and will continue to deliver housing for Bermudians."

Sen. Burch described the first-time buyers as those "sons and daughters" who voted for the first time in 1998 and who now have families of their own.

He said: "In the last nine years they have married, had children, started businesses and tried to buy their first home; but are paying high rents instead.

"These young men and women, now in their late 20s and early 30s, are the backbone of our economy in that they possess the energy and the earning capacity to drive the engine that is Bermuda from the centre and not the periphery.

"They have endured the demeaning experience of having considerable savings and still being asked by lenders to bring their parents' deeds to secure their home purchase."

Sen. Burch said: "In our Bermuda of 2007 and beyond, we as a Government must help these young men and women, and by extension we can also help their parents.

"We must help them to achieve the basic aspiration of home ownership and we must not force their parents to sacrifice twice to give them that dream.

"This is why this Government will provide 500 interest-free loans for down payments to first-time Bermudian homeowners. And we won't stop there.

"We will continue to develop other innovative ways to increase Bermudian home ownership. We know our young people want to and can stand on their own; they simply need the tools by which to do so.

"I am excited by this Government's housing policy because it demonstrates joined-up Government at its best. The aims of ministries like Social Rehabilitation, Finance, even Justice, are supported by our sound housing policy.

"One such example and I say a bold example is the proposal to enshrine 'rent geared to income' in legislation. The Progressive Labour Party Government is not prepared to leave such an important ideal to chance. Yes, laws can be changed; but it would take a foolhardy politician to mess with this law once it is in place.

"Quite simply, 'rent geared to income' is as its title suggests. We aim to ensure that every single tenant of the Bermuda Housing Corporation will forever pay a fixed percentage of his or her income as rent.

"This will allow our tenants to financially plan, budget more effectively, save without fear and more aggressively, affording them the same dignity as those living in private rentals."

Sen. Burch added: "Our next phase will further house our people without the need to make space where there is none, without the need to wait for planning approval, for designs and construction.

"This is a Government with an admirable record of achievement and a Government with a vision for delivering the best for Bermuda. We shall not shirk from that responsibility."

When asked what the maximum loan amount would be, Sen. Burch said there was a $700,000 ceiling, but Government was unable to clarify this further last night.

Sen. Burch said yesterday: "But we expect it will be less than that because we'll start with these people on our list, many of whom are already pre-approved by financial institutions."

He added that from the 2007-8 housing budget of $65 million, "we will have spent about $30 million of that in this financial year".

Asked how much more money would be needed to fund the interest-free downpayments, Sen. Burch said: "We don't anticipate an increase in the $65 million budget. Based on the timing and what is planned for next year we don't anticipate having to increase that figure, but there is the ability to increase that if the need so arises."