Government finds land for 80,000 homes

| February 2, 2012
Government finds land for 80,000 homes

The Government launches its NewBuy mortgage guarantee scheme in March, which will help house buyers by underwriting 95% mortgages on new-build properties up to £500,000 in value.

The scheme depends on having sufficient sites available to house builders and housing minister Grant Shapps revealed today that sufficient land for 80,000 properties has already been identified.

Mr Shapps said he is now working with the BBC, Network Rail, Royal Mail and public sector organisations such as HM Treasury and the Ministry of Justice to identify further unused sites for housebuilding.

He expects enough land for 100,000 homes to be released by 2015.

The NewBuy mortgage guarantee scheme is an extension of the New Build Indemnity Scheme which was announced in November.

The initial scheme was designed to help first-time buyers, but the NewBuy scheme extends this help to people who wish to move house.

Mr Shapps revealed a number of other measures to boost the housing market, including plans to devolve power from Whitehall to town halls and to allow councils to keep rents collected from council tenants and invest the money in their housing stock.

Councils previously had to surrender social rents to the government, which then redistributed the revenue, leaving some councils with less than half the amount they collected.

Speaking to housing sector organisations, Mr Shapps said: “I’m pulling out all the stops for those who want to get on the property ladder, so from March the NewBuy Guarantee scheme will be on hand to help people buying newly built properties with just a fraction of the deposit they would normally need.”

Nationwide Building Society is launching an advertising campaign to highlight its efforts to support first-time buyers.

The building society claims it is doing more than any other lender for first-time buyers by providing Save to Buy and limited liability guarantor mortgages, online guides to the mortgage process, discounted fees and by participating in New Build Indemnity Scheme.

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