The companies represent a wide spectrum of the housing construction industry and, in turn, have had over 28,000 expressions of interest from prospective home buyers.
The scheme will mean that as many as 100,000 buyers currently unable to purchase a home will be able to use a 95% mortgage to get a foot on, or take their next step up, the property ladder.
This will provide a much needed boost to housing construction and will see 50,000 jobs created and safe-guarded on sites all around England with more established in the supply chain.
NewBuy has been designed by the Home Builders Federation and the Council of Mortgage Lenders; support from the government in the form of the guarantee has made it a reality.
The house building industry has wholeheartedly welcomed the scheme.
Currently 7 builders already have agreements with lenders in place:
– Linden Homes
– Taylor Wimpey
– Crest Nicholson & Miller Homes will have agreements in place imminently.
Stewart Baseley, Executive Chairman of the HBF said:
“NewBuy will help thousands of people to meet their aspirations to buy a new home, freeing up the housing market and helping first time buyers and those unable to take the next step on the ladder.
“The scheme will also provide a vital kick-start for house builders large and small who will be able to build the homes and create the jobs that the country desperately needs.
“The launch of NewBuy is a credit to developers, lenders, JLT and government who have all shown real determination and imagination to address the key issue that has kept the housing market and house building subdued for the last few years.”
Brian Berry, Federation of Master Builders Chief Executive said:
“Lack of affordable finance is still the greatest constraint for first time buyers wanting to get on the housing ladder. The result is that the average age of the first time buyers is now 37.”
“It is good that the Government is making considerable efforts to widen access to the scheme to smaller builders as small building firms still deliver around a third of our housing annually and are essential to any attempt to increase housing output. They are also best placed to bring forward the small brown-field sites that are essential to meeting our needs without placing undue pressure on green belt land.”
“While small house building firms will need to examine the details and make a decision on whether the scheme will work for their business, we urge small house builders to at least look at the details as it is a scheme with considerable potential.”
Andy Hill, Chief Executive of Hill, said:
“Affordability and mortgage stagnation have been blighting the property industry over the last few years, so incentivising homebuyers and creating new jobs will reinvigorate the confidence to build and to buy.
“NewBuy has been designed to help the full property chain, by enabling the ‘bottom rung’ of the property ladder and providing a life-line to struggling first time buyers, but also helping second tier buyers, looking to move up the ladder. With the average deposit on a £200,000 house going from £40,000 to £10,000 with NewBuy and competitive rates of 4.29%, this is an extremely attractive deal for all buyers.”
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