Budget 2013: Deloitte comments on Home Ownership
21 March 2013
James Pargeter, head of residential projects at Deloitte Real Estate, comments on home ownership details in today’s Budget: “The main emphasis is on home ownership being maintained as the key driver of the housing market. The new ‘Help to Buy scheme’ is an extensive set of measures to boost demand for home purchases.
“It is in two parts: the first is an extension of ‘First Buy’, aimed at all those buying a new-build home - not just first-time buyers. For those with a minimum 5 per cent deposit, the Government will lend up to 20 per cent as an equity loan to enable a 75 per cent loan to value mortgage to be secured from a mortgage lender. The equity loan will be interest-free for the first five years and will be repayable when the home is sold, or earlier.
“The second is a new ‘Mortgage Guarantee scheme’ worth up to £130bn, leveraged from £12bn of government guarantees, which will run for three years from the start of 2014. It will be available to all, not just to first-time buyers, and will be available for both new-build and existing properties.
“This package is a welcome boost to both the housebuilding industry and developing affordable housing providers as, by stimulating an increased level of demand certainty, it should allow housing supply to rise. Existing schemes with planning consent, but which lack current financial support, should have a better chance of being able to commence and to be built at a quicker rate as a result.”
Notes to editors
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