Can’t swing a cat! Shapps vows to help the overlooked “boxed-in generation”
Housing Minister, Grant Shapps, has pledged support to what he dubs the “boxed-in generation” as they try and move up the property ladder.
His speech to house builders follows a recent survey by Findaproperty.com which discovered nearly a third of parents regard their current home as insufficient in size to accommodate their family, a figure which jumps to 40 per cent for younger families.
With much focus on first time buyers Shapps wants these “overlooked owners” to also receive the help they need and reminds the industry that the Government’s NewBuy scheme is not confined to first time buyers.
The NewBuy Government scheme allows lenders to offer larger loan-to-value mortgages on new-build homes with the associated risk mitigated through an indemnity guarantee financed by property developers and the Government.
Whilst it is designed largely with first time buyers in mind, it is actually available to anyone who is looking to buy a newly-built property including second time buyers stuck in their first home as Shapps explains:
“For years increasing numbers of people have outgrown their homes but been unable to move, and first time buyers have been unable to buy.
“They know who they are. Hardworking people who have bought their home when they were single, maybe met someone, fell in love and now have a couple of kids. They expected to trade-up – because that’s what their parents were able to do. But now they’re boxed in, home outgrown. Stuck in a flat, when really what they want is a family home.
“The NewBuy Guarantee will give our second-time buyers a second chance, as this is the first scheme of its kind not confined to first time buyers, but available to anyone looking to buy a newly-built home.”¹
There are currently four lenders offering 95 per cent loan-to-value (LTV) mortgages and nine house builders supporting the scheme:
|Barclays||Barratt, Bellway, Bovis, Persimmon, Redrow and Taylor Wimpey|
|Halifax||Barratt, Bellway, Bovis, Crest Nicholson, Cala Homes, Lindon Homes, Persimmon, Redrow and Taylor Wimpey|
|Nationwide||Barratt, Bellway, Bovis, Persimmon, Redrow and Taylor Wimpey|
|NatWest||Barratt, Bellway, Bovis, Lindon Homes, Persimmon, Redrow and Taylor Wimpey|
Content correct at time of publication