The plans announced by the Prime Minister to help re-ignite the flailing property market offer assitstance to both house builders and first time buyers.
At the heart of the strategy is a “new-build indemnity scheme” (sorry for the housing jargon, but that’s its working title). It’ll be available to up to 100,000 prospective buyers nationwide who are currently frozen out of the housing market because of the need for large deposits.
Under the proposals, homebuyers will be able to get loans on new-build homes with only a five percent deposit. To protect mortgage lenders, the government and house builders will provide security for the loan to minimise losses in the event of repossession or negative equity scenarios. The scheme will kick off next spring.
We’re waiting on the details of how this new initiative will work, and we don’t yet know how many developers in our region will be awarded funding, but in principle, we’re pleased the government is taking positive steps to help first time buyers.
The on-going issue of lenders needing large deposits is a huge barrier for many potential buyers, so any initiative which helps people over-come this barrier is a positive thing for the housing market. But as always – resources are limited. We’ll keep you posted!
For more info on all low cost home ownership schemes in Greater Manchester, Lancashire and South Yorkshire, contact Plumlife on 0161 447 5151 or visit the website: www.plumlife.co.uk