The launch of the Government’s NewBuy scheme on 12 March, which heralds the return of 95 per cent mortgages for buyers of new homes, is already attracting enormous interest.
The initiative, available on brand new properties up to the value of £500,000, means that credit-worthy first time buyers may now only need to save a five per cent deposit before they can get on the property ladder. Home movers with limited equity in their existing house will also benefit from the increase in availability of 95 per cent loan to value mortgages.
Local property developers have already seen a great number of potential buyers express an interest, with around 20,000 potential homebuyers already pre-registered their interest on the David Wilson Homes website nationally with the weekly registration rate now hitting 1,500.
Interest in the scheme is being driven by the dramatically reduced deposit needed to buy a new home, giving creditworthy buyers the best opportunity for five years to get onto the housing ladder.
Paul Moran, sales director at David Wilson Homes Southern said: ‘This is a significant change for the housing market in Hampshire and we are seeing substantial levels of interest.
‘We believe this initiative will provide the necessary kickstart to the market which has been starved of mortgage finance in the past five years.’
Taylor Wimpey is offering the scheme on all its homes in Portsmouth.
Sarah Pasco, regional sales and marketing director, commented: ‘We welcome the NewBuy scheme as we believe it will go a long way in helping a wide range of buyers who have had to put their dreams of getting on or moving up the property ladder on hold due to the size of deposits required by mortgage lenders.
‘We are offering the scheme on all five of our developments in the area including Scholars Walk in Portsmouth, Austen Court in Hilsea, Alver Village in Gosport, The Brambles in Denmead and Wellington Park in Waterlooville. With prices starting from £90,000, buyers would only need a deposit of £4,500 under the NewBuy scheme.’
And Linden Homes has welcomed the launch of the government’s NewBuy Guarantee too, as a major step forward in encouraging more buyers back to the market.
Matt Paine, Linden Homes Southern managing director, added: ‘It is encouraging to see the government making a bold move in boosting mortgage availability and showing real confidence in the market once again. New home construction provides a significant contribution to the UK’s general economic growth and the availability of mortgages is a major contributing factor in this.
‘We’ve secured partnerships with three major lenders to enable us to offer NewBuy at our developments across the region and are now keen to see as many major high street lenders as possible get on board with the scheme to ensure its benefits can be felt across the region.’
All three local property developers have noted that some people have been renting for three or four years and many are fed up that they are paying more in rent than if they had bought.
But with this initiative, buying a new home and owning a property, rather than renting, is now closer than ever for every local property househunter.