Homebuyers in the dark over Government help
NewBuy is the Government backed mortgage indemnity scheme that aims to help people with smaller deposits buy a new build home. It was launched in March this year and is available to homemovers as well as first-time purchasers. A
Property website Rightmove’s report; Newbuy – six months on surveyed 4,183 people between 13 to 20 August.
Respondents had the details of NewBuy explained to them and were asked if they felt it would help their ability to buy. Around three in 10 respondents who stated they would like to buy in the next 12 months but don’t feel in a financial position to do so, stated they felt ‘much more likely (6%) or ‘a bit more likely’ (25%) to buy over the next 12 months thanks to NewBuy.
However, Rightmove identified one potential barrier to the success of the scheme. Its survey showed that 60% of general home movers stated they didn’t feel the scheme would make a difference to them as they don’t want to buy a new-build property.
Rightmove’s new homes director, Alex Soloman said: “Our experience of the new build property sector is that around half of those who purchase a new build home don’t set out to purchase one initially.
“Therefore there are perhaps two major communication challenges necessary to assist the NewBuy scheme. Raising general awareness among the home moving public is the first. Second, home movers need to fully understand the benefits of new build such that they can make a fully informed decision as to how best to get onto the property ladder.”
However, research out from the Home Builders Federation today said that NewBuy was “starting to really take off”.
Its research showed that 1,300 homes have been reserved through the government’s NewBuy scheme since its launch in March. The government has yet to publish statistics which reveal the number of completed NewBuy transactions.
Last week, the government unveiled an £800m package of proposals – including plans to drop quotas for affordable housing on stalled schemes and private rented developments as well as expanding FirstBuy by £280m, in a bid to boost the housing market.