The scheme is designed to help potential purchasers of new property who have secured a 5% deposit to purchase a ‘new build’ property. It was announced in November as part of the Department for Communities and Local Government’s Housing Strategy.
The scheme is designed to enable borrowers to secure up to a 95% loan to value mortgage from participating housebuilders builders in England. NewBuy is a joint initiative with the Home Builders Federation (HBF) and the Council of Mortgage Lenders. The Government said that it is working with the housebuilding sector to make the scheme viable.
The Government's Housing Strategy pulls together existing housing policies and contains new elements, such as the new build indemnity scheme; a new £400 million 'Get Britain Building' fund, and a consultation on proposals to boost stalled developments.
The annual HBF Policy Conference next week will focus on the Government’s Housing Strategy, in addition to exploring the emerging draft National Planning Policy Framework (NPPF) and implementation of the Localism Act, the HBF said.
