Launching "NewBuy part exchange", the minister said this new measure would help free up the housing market, not just for these "second-steppers", but also for aspiring first-time buyers, as more properties are freed up to buy.
Builders now offering the NewBuy scheme will now offer to buy a customer’s existing property in advance of selling them a newly-built home, alongside their 5% deposit.
This move will address a key issue in the housing market, where existing homeowners are struggling to sell their current property and so move up the chain.
It comes as the Home Builders Federation report that there have been 3,000 reservations made through the NewBuy scheme, which offers the opportunity to buy a newly built home with a fraction of the deposit that’s normally required.
Prisk said: "The NewBuy scheme is unique in the industry in that it not only supports aspiring homeowners, but also those looking to move up the property ladder.
"The part-exchange offer to second-steppers will help them make that move, getting the housing market moving and ensuring those looking to move to a bigger home more suited to their needs can do so."
Stewart Baseley, Executive Chairman of the Home Builders Federation, said: "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.
"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."
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