The NewBuy scheme was officially launched this morning by the Prime Minister at a Barratt site in Lewisham. HBF has spent nearly a year in discussions with the CML and major lenders. We approached the Government in September last year to see whether it would become involved in the scheme. Its involvement was confirmed on 21st November when the Housing Strategy was launched. It has committed £1bn to the scheme over three years, enough to facilitate as many as 100,000 sales.
The scheme provides 90-95% LTV mortgages to new home buyers qualifying for a mortgage with participating lenders. It is open to all buyers, not just first-time buyers. Six home builders were ready for today’s launch, but we expect many more companies to join the scheme over the coming weeks. The three lenders involved in today’s launch have announced their rates. More lenders will become involved in due course. Because the Government’s involvement raise EU State Aid issues, the scheme is available to all home builders, whether or not HBF members, and whatever their size. However HBF members may be reassured that non-members will be treated on an equal basis, and any direct costs incurred by HBF (legal, auditing, regulatory) will be recouped from participating home builders on a fair and equitable basis.
A number of home builders have described the scheme as “game changing”. It is conservatively expected to lead to an additional 25,000 new home sales over the next three years, creating well over 50,000 additional jobs in home building and the supply chain.
HBF’s web site contains a special NewBuy section, with information for home builders, IFAs and a list of home builders participating in the scheme for the lenders. click here to view. The site includes a special Guidance note for house builders thinking about participating in the scheme please click here to view.
The scheme has been a massive undertaking, involving HBF, a Working Group of major home builders, the CML and a team of lenders, DCLG, Treasury, the FSA, HMRC and JLT, the broker administering the scheme. We must now wait to see the results of this unique partnership between home builders, the lenders and Government.
Home Builders Federation
London, SE1 9PL
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