New buy scheme a flop?
Only 250 homes were bought through the government’s NewBuy scheme in the first four months since its launch in March, according to government figures. According to The Guardian, the government had hoped it would help up to 100,000 people move by 2015 but the take-up has been extremely slow.
The much-vaunted initiative allows first-time buyers the opportunity to get a 90-95% mortgage for a new-build home with the risk of mortgage default being shared between the government and housebuilders. The Home Builders Federation is still supportive of the scheme maintaining that 1,500 reservations have been made through NewBuy scheme and at least 25,000 additional new homes will be built as a direct result. It said take-up in the last few weeks had significantly increased.