Homeowners hoping to take their next step on the property ladder will now be able to trade in their old property for a new-built home, Housing Minister Mark Prisk said today.
Launching ‘NewBuy part exchange’, the minister said this new measure would help free up the housing market for aspiring first-time buyers as well as ‘second-steppers’ as more properties are freed up to buy.
From today, builders offering the scheme will now offer to buy a customer’s existing property in advance of selling them a newly built home, alongside their 5 per cent deposit.
The Government hopes that this move will address a key issue in the housing market, where existing homeowners are struggling to sell their current property to move up the chain. NewBuy part-exchange will be available for the first six months of 2013, with the possibility of this being extended subject to demand.
The Home Builders Federation reports that there have been 3,000 reservations made through the scheme which offers the chance to buy a newly built home with a much smaller deposit than is normally required.
Mark Prisk said: “The NewBuy scheme is unique in the industry in that it not only supports aspiring homeowners, but also those looking to move up the property ladder. The part-exchange offer to second-steppers will help them make that move, getting the housing market moving and ensuring those looking to move to a bigger home more suited to their needs can do so.”
Stewart Baseley, Executive Chairman of the Home Builders Federation, said: “We know that there is a huge pent-up demand for home ownership after years when large deposit requirements have prevented many people from buying their first home or trading up to a larger home.
“NewBuy is now a real option for those who thought they couldn’t get on to the property ladder. Allowing people to part-exchange their existing homes and buy a new one using NewBuy will also be a huge boost for those families stuck in their existing homes, unable to sell and without the required deposit to move.”