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NewBuy boost for home-movers who need it most

Rightmove surveyed over 2,750 potential buyers on their awareness of NewBuy and how the scheme will affect them. Amongst buyers who are looking to buy for the first time, 38% stated they would be more likely to purchase a home over the next 12 months once the scheme is launched. The scheme also looks set to benefit ‘second-steppers’ – those looking to sell and trade up for the first time – with 24% of this group stating they would be more likely to purchase over the next 12 months.

Rightmove director Miles Shipside comments: “NewBuy looks set to give a significant housing boost to the fortunes of those who need it the most. We’ve found that raising a deposit has long been the major obstacle for those looking to purchase a new home at the foot of the housing ladder. NewBuy helps address this challenge, and we’ve found that the knock-on effect is that, as of today, nearly two in five first-time buyers will be more likely to getting on the housing ladder via thanks to this initiative.”

NewBuy is a joint industry and Government initiative which aims to help home-buyers who may have found themselves unable to move up, or step onto, the housing ladder to secure up to a 95% Loan-to-Value mortgage on new build properties from participating builders in England.

Shipside adds: “First-time buyers and second-steppers have long been frustrated in their efforts to get onto or move up the housing ladder by prohibitive deposit requirements. Four out of ten first-time buyers cited ‘raising enough of a deposit’ to be their single biggest housing market concern in our recent First-Time Buyer Report. NewBuy opens the door to these groups and can also serve as a great stimulus to help safeguard and create jobs in the new build property sector.”

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0 thoughts on “NewBuy boost for home-movers who need it most

  1. Gavin says:

    Today the government launch Newbuy scheme to purchase newbuilds with a 95% deposit. It will be just another failed scheme in the likes of shared ownership and shared equity (homebuy, firstbuy etc).

    Newbuy is a con designed to assist the builders not the public. It sells new builds in a falling market at an inflated price with just a 5% deposit. You will be put in instant negative equity and trapped from in the future steps up the ladder.

    This scheme is designed to focus on gullible or desperate people who don’t realise the consequences. To make it worse the tax payer is exposed to the debts if the properties are repossessed.

  2. Major Landlord says:

    Whenever any government interferes in housing, it goes wrong. This will be no exception. By boosting the ability of housebuilders to carry on grabbing land, and building overpriced and shoddy newbuilds, they are helping nobody but the greedy builders. House prices may well rise, and the taxpayer will as usual carry at least part of the cost.

    If housebuilders are so desperate to sell more houses, how about improving size and quality, and how about reducing prices? How about the banks taking more of the risk by reducing deposits back to the sensible 10% level at which they stayed for decades?

    I am disappointed by Grant Shapps – or is this really kowtowing to the noisy, we-know-best, nanny-state LibDem element of the coalition?

    There are so many other, more sensible ways in which the government could have helped the housing market: what about forcing owners of the 800,000 empty houses in the UK to bring them back into use or hand them over to the local council? Why don’t house builders turn their attention to refurbishing old, well-bult houises rather than throwing up more cardboard shoeboxes that will last no more than 50 years?

    Do governments NEVER learn?

  3. Fleur says:

    I am not convinced that the NewBuy scheme is going to have any significant impact other than the 100,000 buyers that it is estimated to help. I agree the property prices are still far to high and haven’t come down to more realistic levels in a buyers’ market. They are introducing all of these incentives, HomeBuy schemes, First Steps, stamp duty tax freezes and now NewBuy and still the property market is faltering. The cynical will say this scheme will help the home builders more than the buyers. Buyers will of course get help with the 95% mortgages that they have been struggling to obtain over the past three years.