NewBuy reservations reach 600

Around 600 people have reserved new homes through the NewBuy scheme since its launch three months ago, figures released by the Home Builders Federation have revealed.

NewBuy, an industry funded government backed mortgage indemnity scheme, allows buyers to secure their new build home with a 5% deposit.

Since its launch in March, the number of house builders registering for NewBuy has increased from seven to 17, while the number of lenders has gone up from three to five.

Stewart Baseley, executive chairman of the Home Builders Federation, who was part of the team that developed the NewBuy scheme, said: “It is still a challenging market but there are options for people looking to buy their own home. Newbuy, is really starting to take off and allows people to secure a home with a 5% deposit. In addition, many builders operate shared equity schemes that make buying more affordable

“Reaching 600 NewBuy reservations in such a short time is a fantastic start and clearly demonstrates the customer need.

“Over the coming years NewBuy will make a real difference and help tens of thousands of people realise their ambitions of home ownership.

“In turn this will then help kick-start new home construction, creating economic growth and thousands of jobs across the country.”