The Government has announced a number of initiatives to try and boost the UK’s housing market.
First is a new build indemnity scheme that will give a helping hand for up to 100,000 prospective buyers who are currently frozen out of the housing market because of the need for large deposits.
Under the proposals, homebuyers will be able to secure loans on newly built homes – the bedrock of the first time buyer market – with only a five per cent deposit.
The Government and housebuilders will help provide security for the loan, so if the house is then sold for less than the outstanding mortgage total the lender will be able to recover its loss.
Through the scheme lenders will be encouraged to offer mortgages with smaller deposits, increasing demand for new homes and giving a welcome boost to the housing market.
Assistance for people buying homes will be matched by support for the people who build them, from the largest housebuilder to people who want to build their own homes.
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