Study shows help for first-time buyers is making an impact.
The builders behind half of all homes built in England are committed to offering the NewBuy Guarantee to help aspiring homeowners onto the property ladder, Housing Minister Grant Shapps said today (23 June 2012).
It comes as a new study by lenders Halifax showed that government help for first-time buyers is bringing down the cost of home ownership, ensuring the dream of buying a property is in reach for more and more people.
Mr Shapps revealed that 9 of the 10 largest housebuilders in the country are now signed up to offer the NewBuy Guarantee - which offers aspiring homeowners to buy a new-build property with a fraction of the deposit they would normally require.
The NewBuy Guarantee is one of a number of government-backed measures in place to support those looking to take their first step onto the property ladder. Others include:
- the FirstBuy Scheme, which offers an alternative to the Bank of Mum and Dad for those struggling to get together the deposit they need; over 10,000 first-time buyers are expected to be helped over the next 2 years
- the HomeBuy schemes, which help first-time buyers to buy a 25% share of a new property, paying rent on the remainder
Today’s Halifax Survey shows that the average price paid under affordable home ownership schemes is £161,839 - 12% lower than the average house price in England.
Housing Minister Grant Shapps said:
“Today’s research shows how the range of government schemes available is bringing down the cost of home ownership and making that first rung of the property ladder easier to reach for more and more people.
“As well as the FirstBuy Scheme offering a valuable alternative to the Bank of Mum and Dad, the NewBuy Guarantee is proving increasingly popular, offering those who dream of owning their own home the chance to buy a newly-built property with just a fraction of the deposit normally required.
“And because both schemes are available on newly-built properties, they also offer a boost to our ongoing efforts to get Britain building, delivering the homes and jobs this country needs.”