You are here: Home - Mortgages - First Time Buyer - News -

Homebuyers in the dark over Government help

0
Written by:
11/09/2012
While 66% of aspiring first-time buyers have heard of the Government's NewBuy scheme, just 49% of movers are aware of the incentive. of the scheme, research from Rightmove has shown.
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.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2204457-head-in-hands-at-desk
52% of adults take no financial advice

More than half of the UK population has never received financial advice or cannot recall receiving any, research from the...

Close