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24th March 2017
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Happy New Year for NewBuy!
New figures released by the Home Builders Federation reveal a significant increase in the number of reservations being made through the Government backed NewBuy scheme.
The reservation rate in the first three weeks of 2013 is running at the highest levels since the scheme was launched last March. Well over 100 people have reserved a new home each week, continuing the upward trajectory in the take up of the schemes. In total 3000 people have now reserved a new home using the scheme.
NewBuy, the industry funded Government backed mortgage indemnity scheme, allows buyers to secure their new build home with a 5% deposit.
At launch the scheme had seven builders and three lenders on board. There are now over 60 builders offering the scheme and six lenders and since the scheme began interest rates on NewBuy mortgages have dropped significantly - increasing the availability and appeal of the scheme to home buyers.
Yesterday saw Housing Minister Mark Prisk officially launch Newbuy Part Exchange, which means that many NewBuy builders will now be able to offer to buy a customer's existing home, in advance of selling them a new home using NewBuy. Part exchange alongside a 5% deposit will address one of the major blockages in the housing market that has seen existing home owners -often so called 'second steppers' - unable to sell their home in a wider stagnant market and with little equity in their home, struggling to move up the ladder.
"We know that there is a huge pent up demand for home ownership after years when large deposit requirements have prevented many people from buying their first home or trading up to a larger home," said Stewart Baseley, Executive Chairman of HBF (one of the organisations which developed the NewBuy scheme) at the launch.
"NewBuy means people can buy a new home with a 5% deposit and is now a real option for those who thought they couldn't get on to the property ladder.
"Allowing people to part exchange their existing homes and buy a new one using NewBuy will also be a huge boost for those families stuck in their existing homes, unable to sell and without the required deposit to move.
"Over the coming years NewBuy will make a real difference and help tens of thousands of people realise their ambitions of home ownership.
"In turn this will then help kick-start new home construction, creating economic growth and thousands of jobs across the country."
Also speaking at the launch, Housing Minister Mark Prisk said:
"Today's figures clearly demonstrate the success of the NewBuy scheme in offering a valuable option to aspiring homeowners onto the property ladder with just a fraction of the deposit they would normally require.
"And now, the new Part-Exchange deal will offer further help to people looking to make their next move, getting the housing market moving, and ensuring those looking to move to a home that better suits their needs, can do so."
25th January 2013