Rob Perrins, MD, Berkeley Homes Group, said:
The Berkeley Group welcomes this innovative initiative which will enable people who can afford the ongoing cost, but not the high upfront deposit required by today’s market, to acquire a new-build home. As important is the stimulus to the wider economy. A strong housing market creates jobs and is such an integral part of consumer confidence for the UK. It is also a fantastic example of Government and the private sector working together to find solutions to today’s market challenges.
Stewart Baseley, Executive Chairman of the Home Builders Federation, welcomed the new build indemnity scheme. He said:
In recent years many people have been unable to realise their dreams of buying a home because of the huge deposits required by lenders. This scheme will allow people to buy their new home on realistic terms and help in particular hard-pressed first time buyers.
It will also be a huge boost to house building. Since 2007, the biggest constraint on homes being built has been mortgage availability. This scheme will see more desperately needed homes being built, create jobs and give the economy the boost it needs.
Nick Jopling, Executive Property Director of residential landlord Grainger, said:
Today’s surprise £400 million announcement to boost housing supply is a welcome shot in the arm for the housing sector and the UK economy as a whole. While it isn’t the full answer to the UK’s housing crisis, alongside the other measures expected in the national housing strategy, it will go some way to easing the chronic shortage of housing facing this country.
Stephen Stone, Chief Executive at housebuilder Crest Nicholson, said:
We have an acute housing crisis in this country and the long term undersupply of new homes has been severely aggravated by the recession. A healthy housing market is critical to the success of the economy, but restrictions to the mortgage market in the last few years have significantly hindered the rate of recovery.
The Government’s proposed support of a mortgage indemnity scheme will give a vital boost to the market, doing much to unlock the funding restrictions facing the sector. The plans will be very much welcomed by the industry, and the expectation that such a scheme will generate a significant uplift in new home production is hugely encouraging.
Mark Clare, Chief Executive of Barratt Developments PLC, said:
This is exactly what the industry needs to ensure that customers can buy and we can build the homes the nation so desperately needs. Lack of mortgage finance is the single biggest issue we face and I’m confident that we can increase production to meet the very clear demand that exists for more homes.
RIBA Chief Executive, Harry Rich, said:
We have been pressing hard for more homes to be built in the UK and for these to be of high design quality. I am delighted that the government has listened and has given such prominence to design quality and the role of architects in driving good design within their communities and in delivering housing fit for the 21st century.
Andy Yallop, Group Chief Executive, Croudace Homes said:
House builders operate in a highly competitive market place and can only invest in land and future production if there is mortgage finance available for its customers. This new initiative will allow the many people who aspire to buy a new home to do so, something that has been impossible for many for the last three years. It will enable us to increase our future production and thereby increase the number of people employed.
Paul Smee, Council of Mortgage Lenders Director General, on the new build indemnity scheme, said:
This scheme is good news for home-buyers, developers and indeed the UK economy. Lenders will be able to reduce the level of deposit needed by home-buyers in the new build sector, enabling more buyers to buy and so supporting the flow of new housing development, with all its positive consequences for jobs and the economy as a whole.
Kate Henderson, Chief Executive of the Town and Country Planning Association, said:
We welcome the Government’s pledge to provide more support for locally planned large scale development, where there is community support and private sector appetite, through the planning system and infrastructure prioritisation. A new generation of locally-led, comprehensively planned garden communities - including sustainable urban extensions, urban villages and new settlements - is overdue.