Published: 5 February 2013 | Author: Bernard Clarke
Lenders and house-builders are supporting the expansion of the NewBuy scheme into Wales. More details of NewBuy Cymru, which replicates similar schemes already up and running in England and Scotland, were revealed on Monday by Huw Lewis, the Welsh housing regeneration and heritage minister.
NewBuy Cymru will be available to all buyers in Wales who fulfil lending criteria, and seeks to support the purchase of up to 3,000 newly-built homes.
As with NewBuy in England and Scotland, NewBuy Cymru is supported by the national government, home-builders and the CML. The Welsh government and builders will act as guarantors so that buyers can obtain higher loan-to-value mortgages than would otherwise be available to them.
Buyers will pay a deposit of at least 5% and will be able to purchase a home with a value of up to £250,000. The Welsh government has estimated that the scheme could enable £500 million to be invested in housing over a five-year period.
Speaking at Monday’s event at the Millennium Stadium in Cardiff to explain details of the scheme, Mr Lewis said:
"We are all more than aware that we are working in very difficult economic times, which are having a significant negative impact on all aspects of the housing market. But we mustn’t let these difficulties stop us doing what we can to help the housing system work more effectively."
In support of the event on Monday, the CML’s director general Paul Smee said:
"NewBuy Cymru will be a welcome addition to the range of options in Wales designed to make it easier for good borrowers with only modest deposits to buy a home. We look forward to working with our members and others to deliver the scheme successfully."
Under NewBuy in England, which was launched last spring, sales have grown steadily and the Home Builders Federation estimates that there are now 3,000 reservations.
In Scotland, MiNewHome was launched last autumn along similar lines as in England and Wales, and seeks to support 6,000 additional home sales in three years.