Help for New Home Buyers will Boost House Building across Wales
Housing Minister, Carl Sargeant announced today a new scheme which will help buyers of new homes and provide a major boost to home builders across Wales will open for business in the New Year.
From 2 January, the Welsh Government’s £170 million Help to Buy – Wales shared equity loan scheme will make home ownership easier for buyers of new homes who have small cash deposits.
On a visit to a Redrow housing development in Newport Carl Sargeant said “There’s no doubt that the recession and a tightening of mortgage lending have made getting onto the property ladder much tougher in recent years. Buyers without a large deposit are increasingly finding that home ownership is not an option.
“The financial crisis has led to a dramatic fall in house building activity as builders scale back their plans in line with buyer demand.
“The Help to Buy – Wales scheme beginning in the New Year, will help more people get onto the property ladder and will provide much needed boost to the building industry in Wales. The investment will support the purchase of around 5,000 new homes in Wales during the next two and a half years.
”To limit scope for confusion, the scheme in Wales matches the UK Government scheme quite closely but it has the added benefit of being easier for small home builders to access.
“I therefore urge all builders, large and small, to register now so that they are ready for the first loans being made available to buyers in January.”
Richard Price, the Home Builders Federation’s Planning and Policy Advisor in Wales said “The launch of Help to Buy Wales is an extremely welcome step that will give many more people in Wales the opportunity to buy a brand new home.
“It shows the Welsh Government’s commitment to seeing an increase in home building in Wales. The scheme will lead to increased economic activity and many new jobs in the home building industry and the supply chain, giving a vital boost to the Welsh economy.”
Steve Morgan, Chairman of Redrow Homes added “We very much welcome this much-needed boost for the Welsh housing market and look forward to working with the Welsh Government to help more people get onto, and move up, the housing ladder.
“The Help to Buy – Wales scheme will provide the Welsh housing market with essential momentum and will ensure that more homes get built. It will also create valuable jobs in the construction industry.”
Paul Smee, director general of the Council of Mortgage Lenders said ““We have worked closely with lenders and the Welsh Government to ensure the Help to Buy – Wales shared equity loan scheme works for the specific Welsh market conditions. We believe the scheme will have a positive effect in improving conditions for home-buyers which the CML fully supports.”
The Welsh Government will provide eligible buyers with loans of up to 20% of the purchase price on new build homes up to the value of £300,000 from participating home builders.
Buyers will pay a nominal monthly fee but no interest for the first five years of the loan and a low interest rate thereafter. They can also tailor the repayment plan to suit them and are free to repay the loan at any point during the 25 year term of the loan.
Link to further information for buyers and builders: www.helptobuywales.co.uk