THE Help to Buy scheme is one of the key factors motivating potential buyers of new-build properties in the West Midlands, according to a new survey.
The Government-backed scheme makes it easier for first-time buyers, as well as those with an existing property to sell, to move into a new-build home.
Eligible purchasers can access an equity loan for up to 20 per cent of their new home’s full price, which is interest-free for the first five years, and then only need a five per cent deposit and 75 per cent loan-to-value mortgage.
Housebuilder Bellway recently surveyed people who were actively looking for a new home in the West Midlands and nearly half (45 per cent) of those who took part said they were looking to use the Help to Buy scheme to help them purchase their next home.
And the availability of the scheme was cited by the same number as one of the main factors encouraging them to favour buying a new-build home as opposed to a second-hand property.
Help to Buy has been used in the purchase of 169,102 new homes in England – with more than eight in ten of these bought by first-time buyers – since it was launched in 2013.
Marie Richards, Sales Director for Bellway’s West Midlands division, which is based in Tamworth, said the Help to Buy scheme consistently made it easier for people to overcome the financial hurdles involved in homebuying.
She said: “We know that homebuyers are a canny group of people who have to very carefully weigh up the financial implications of going ahead with their plans.
“Help to Buy is a pretty straightforward arrangement to get your head around, and more importantly, it makes a lot of sense when the purse-strings are a bit tight.
“I would strongly encourage anyone considering buying to have a chat with one of our advisors to discuss whether the scheme might smooth the path to their dream home.”
Other top factors mentioned by participants in the survey as factors encouraging them to buy new included new builds having low running costs (53 per cent), there being no need to renovate or extend them (75 per cent), their modern designs and layouts (76 per cent), and the 10-year NHBC guarantee (71 per cent).
The energy-saving benefits of buying new also stood out for would-be buyers as one of the advantages of new builds compared to secondhand homes.
More information about Bellway’s new homes in the West Midlands is available at bellway.co.uk.