The Government’s NewBuy Guarantee feels like a positive step forward, even for developers like us who sit near the top of housing chains.
The initiative is aimed at people wanting to buy a new build home who are unable to fund a deposit of more than five per cent. It is essentially a guarantee by the Government to the lender if the buyer defaults on their repayments.
The scheme isn’t going to be a magic wand, curing all the ills of the housing market. However, like many in the sector, we see it as a welcome stimulus for the industry.
It is hoped the scheme will help 100,000 buyers take a step onto or up the housing ladder. While the figures aren’t vast, it is estimated they could lead to the creation and safeguarding of around 50,000 jobs. And so the knock on effect will continue through the economy in general and the housing market specifically.
With buyers released at the lower end of the market, it’s a fair assumption that the ripples will be felt right along the chains and, eventually, in the retirement property sector.
Sales and Marketing Director