UK govt’s New Buy scheme in action
24-09-2012
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It is part of a raft of measures being put in place by the government to try to boost the housing and property sectors and police officer Peter Newman and his wife Alison, along with their children, four year old Katie and 18 month old Sophie, are among the first to benefit.
They have moved into a new four bedroom detached home at Miller Homes' Heather Lea Green development in Crook, having utilised the NewBuy scheme which required only a 5% deposit.
The NewBuy scheme, which Miller Homes is offering at its developments across England, has been designed to help overcome the large deposit gap for many potential homebuyers by enabling them to purchase a new build property with only a small deposit of 5 to 10%. Lenders participating in the scheme will then provide a 90 to 95% loan to value mortgage for those who meet their qualifying criteria.
As well as struggling to sell their home, the Newman family found it difficult to find a big enough deposit to secure them a large family home, before approaching Miller Homes for advice and support.
‘Peter and his family were finding it difficult to sell their home in Crook having had had the property on the market for almost three years,’ said Elaine Jackson, sales advisor at Miller Homes' Heather Lea Green development.
‘When they showed interest in purchasing a home at Heather Lea Green I advised that they rent their current property and use the NewBuy scheme to enable them to purchase their new home. This has proved to be an ideal solution for them and allowed them to make a move which they didn't think would be possible,’ she explained.
‘The NewBuy scheme has allowed us to move into our dream home during a difficult financial time. We were beginning to give up hope after having our house on the market for almost three years and we were finding the whole situation really stressful,’ said Mr Newman.
‘However, Miller Homes offered us some great advice and helped us realise we could move with NewBuy even without selling our current home and helped to make the entire moving process quick and hassle free,’ he added.
It comes at a time when figures show that private sector housing registrations in the UK had their best month for over a year this July, with 8,105 registrations, according to new figures from the NHBC.
This still however leaves private sector registrations down 10% for the rolling quarter May to July 2012, compared to the same period last year, some 21,574 in 2012 compared with 23,996 in 2011.
However, across all sectors registrations were down 21% May to July 2012 compared to the same three months last year at 28,951 in 2012 compared with 36,716 in 2011.
Public sector registrations continue to decline, down 42% during the rolling quarter to 7,377 in 2012 compared with 12,720 in 2011.
‘July’s registration figures showed that the sector bounced back from a poor June. The sector continues to show a consistent pattern of decline compared to the same period in 2011,’ said Richard Tamayo, NHBC commercial director.
He pointed out that the government’s plans to relax the rules that require private house builders to include substantial social housing in large projects will undoubtedly benefit the private sector.
