Government publishes encouraging first data on NewBuy
Published: 3 October 2012 | Author: Bernard Clarke
The first 250 sales under the government’s NewBuy scheme were competed by the end of June, according to data published by the Department for Communities and Local Government (DCLG). More than 1,300 reservations have been made so far under the scheme, and many of these – plus other sales – should be reported in the next set of data.
The number of completed sales meant that the maximum possible cost to the government of the scheme had risen to £2.5 million, the DCLG said. Each time a property is sold through the scheme, the possible cost to the government rises by 5.5% of the property’s sale value. But costs will only be incurred if a borrower defaults on the mortgage and the property is taken into possession, and so far there have been no costs to the government.
At the end of last month, the DCLG published data on an extended first quarter of the scheme, running from 12 March until 30 June. The government is planning to publish its next series of data in March 2013. Figures will cover quarterly periods, and be published on a six-monthly basis. Each set of data will include the total number of completions, the government’s contingency liability (or the maximum possible loss) and the total costs incurred.