NewBuy – boost for home-movers who need it most
The Government-backed NewBuy scheme, which has been launched today, will provide a major housing market boost for the buyer groups who need it most, according to research into the effectiveness of the scheme by Rightmove.
Our research finds that just under two in every five first-time buyers state that the introduction of NewBuy means they are more likely to get on the housing ladder over the next 12 months.
Rightmove surveyed over 2,750 potential buyers on their awareness of NewBuy and how the scheme will affect them. Amongst buyers who are looking to buy for the first time, 38% stated they would be more likely to purchase a home over the next 12 months once the scheme is launched. The scheme also looks set to benefit ‘second-steppers’ – those looking to sell and trade up for the first time – with 24% of this group stating they would be more likely to purchase over the next 12 months.
Rightmove director Miles Shipside comments:
“NewBuy looks set to give a significant housing boost to the fortunes of those who need it the most. We’ve found that raising a deposit has long been the major obstacle for those looking to purchase a new home at the foot of the housing ladder. NewBuy helps address this challenge, and we’ve found that the knock-on effect is that, as of today, nearly two in five first-time buyers will be more likely to get on the housing ladder via thanks to this initiative.”
NewBuy is a joint industry and Government initiative which aims to help home-buyers who may have found themselves unable to move up, or step onto, the housing ladder to secure up to a 95% Loan-to-Value mortgage on new build properties from participating builders in England.
Shipside adds:
“First-time buyers and second-steppers have long been frustrated in their efforts to get onto or move up the housing ladder by prohibitive deposit requirements. Four out of ten first-time buyers cited ‘raising enough of a deposit’ to be their single biggest housing market concern in our recent First-Time Buyer Report. NewBuy opens the door to these groups and can also serve as a great stimulus to help safeguard and create jobs in the new build property sector.”
Look out for Rightmove’s NewBuy homepage launching soon.
