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NewBuy housing scheme hailed as a success

NewBuy housing scheme hailed as a success

Category: Mortgages

Updated: 10/09/2012
First Published: 10/09/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government's NewBuy scheme has helped 1,300 first-time buyers onto the housing ladder over the past six months, according to latest figures released by the Home Builders Federation (HBF).

Launched in March this year, the NewBuy scheme is part of the coalition's drive to encourage activity in the first-time buyer market, and boost the house building industry according to some sceptics.

Available to buyers of new build homes valued up to £500,000, the scheme offers 95% loan-to-value mortgages with an indemnity mortgage guarantee, funded by the Government and building companies.

The HBF's report has been met with a fair amount of criticism, however, with some experts disputing the success of the scheme. Indeed, many would argue that with around 180,000 new homes built in the UK every year, the HBF's figure of 1,300 reservations seems pretty insignificant.

Research has also found that 60% of buyers have no interest in new build homes.

Another housing market incentive scheme, FirstBuy, received extra funding of £280 million last week as part of the Government's latest effort to kick-start a subdued housing market.

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