Newspaper article The Journal (Newcastle, England)

Scheme Set to Get Property Sales Going

Newspaper article The Journal (Newcastle, England)

Scheme Set to Get Property Sales Going

Article excerpt

Byline: Karen Wilson

ARANGE of developers in the region are jumping on board a new Government scheme that will make it easier for thousands of North East buyers to purchase a new home.

The NewBuy initiative will help both first-time buyers and those looking to move home by enabling them to access 95% mortgages on properties up to the value of pounds 500,000. Many buyers see the size of deposit as the main barrier to purchasing a property. However, with a small deposit, buyers risk negative equity if the value of the property falls.

A recent survey by Taylor Wimpey revealed that 54% of first-time buyers had abandoned plans to buy a house in the past 18 months because they couldn't afford to save the large deposit required by mortgage lenders.

Taylor Wimpey will be offering NewBuy on all its Fairfield Park, Durham Gate, Langley View and Melrose developments in County Durham.

Regional sales and marketing director Joan Peart said: "Time and time again our buyers tell us that it is mortgage availability, not mortgage affordability, which is preventing them from buying.

"This scheme will help those looking to get on the property ladder and those who want to move but have limited equity in their existing home, so it's good news for the market as a whole."

Barratt North East, which has developments on Tyneside and Northumberland, says the scheme is already attracting enormous interest with around 20,000 potential buyers pre-registering interest on the company's website nationally. It is also launching a helpline (0844 815 6179) to deal with the increased level of interest.

Barratt North East sales director Fenton Hewitt said: "We believe it will provide the necessary kickstart to the market, which has been starved of mortgage finance in the past five years.

"There is a lot of pent-up demand. People have been renting for years and many are fed up that they are paying more in rent than if they had bought.

"Even though house prices have fallen since 2007, not everyone has been able to take advantage because of the hefty deposits that lenders have been demanding ever since the credit crunch began. …

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