The UK’s fifth largest housebuilder, Linden Homes, has credited the government’s Help to Buy scheme with a year-on-year rise in enquiries of more than a quarter.
The 27 per cent uplift, compared to February to April 2012, has included a variety of buyers including first-timers and second-steppers, said Linden Homes.
In fact in just the first seven days following the Help to Buy announcement in the Spring Budget, the company received over 1,000 enquiries across the country via its website.
Linden Homes has seen the most interest in the scheme in the South East of England, with 60 per cent of its customer database across this area now represented by first-time buyers. Furthermore, a recent survey* out to its database found 86 per cent of registered interested buyers that responded were aware of the new scheme.
Help to Buy is a Government backed equity scheme that applies to any new build property up to the value of £600,000. It enables buyers to purchase a new home with just 5% deposit and a 20% Government equity loan – a loan that is interest free for the first five years and can be repaid at any time within the first 25 years.
For example, the scheme has already given one couple in Peterborough the boost they needed to start the process of buying their own home after spending five years in rented accommodation, saving a deposit for their first house.
Alan and Mandy Bartlett say they wouldn’t have been able to consider moving without Help to Buy and have now just reserved their home at Burghfield Place, Gunthorpe.
Mandy explained: “We’ve been living in two-bedroom rented accommodation in the city for the past five years because we haven’t been able to afford to move to a home of our own during that time.
“We’ve spent all that time saving for a deposit and it’s fair to say that without this Help to Buy scheme, we would still be having to rent for some time to come.”
Divisional Managing Director, responsible for Group Sales & Marketing at Linden Homes, Tom Nicholson said, “As hoped, Help to Buy has renewed interest and stimulated an underlying confidence in the market.
“We are closely monitoring the take-up of the scheme across the country and as seen in the latest NHBC new build start figures, will continue to support the Government’s aspiration to increase output.
“Given this improved interest in buying new homes, we expect good progress for the remainder of the year.”
To clarify the Help to Buy process Linden Homes has created a new step-by-step animation which gives a simple overview of the scheme.
* Survey conducted in April 2013 by Linden Homes received 185 respondents, of which 160 stated they were aware of the Help to Buy scheme.
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For further information, contact Tracy Mannion or Claire McCowan on 01962 893893.
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