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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