A BID to ease the pressure on first-time buyers to enter the Isle of Man housing market has been welcomed by the Department of Social Care.

Tynwald has given unanimous approval to an amendment to the existing House Purchase Assistance Scheme, raising the eligible income for those applying for assistance to purchase on the open market from £25,000 to £35,000 and the minimum grant for eligible applicants has been raised from £3,000 to £5,000. 

"The housing market is not only a vital source of economic activity directly, it is also linked to consumer confidence," said a spokesman for the Department of Social Care.

"The department's House Purchase Assistance Scheme has proved to be a very effective way of helping individuals and families to buy their first home, something many could not have achieved without our help."

The support for first-time buyers for a fixed period (to July 2012), would help first-time buyers and encourage them to purchase in the next year.

"This will stimulate the housing market, helping others to move further up the housing chain, which in turn will stimulate spending in the local economy and so help to protect jobs. We estimate that it should help an additional 125 to 150 house moves over the next year, generating economic activity worth approximately £2,000,000."

This amendment is expected to provide a valuable boost to the construction, retail and other related sectors as well as increase consumer confidence to help the wider economy.

The Department said that many Members of Tynwald spoke very favourably of both the scheme and the government's achievements in helping to provide affordable housing in recent years.

Since the first scheme began in 2000 the department has helped over 1,200 individuals and families to purchase their first home.