Research conducted by analysts at Canncord Genuity have found that few houses are being sold under the Coalition’s NewBuy scheme.
The scheme launched 2 months ago, was intended to stimulate the housebuilding industry by offering 95% loan-to-value mortgages on new build properties. However builders have complained that lenders are pricing NewBuy loans too steeply, affecting their ability to sell.
As a result some of the UK’s largest property developers have said that they have sold less than one house apiece under the flagship scheme. Together the companies sell 30,000 properties a year, but so far collective sales only amount to five homes under the new buy scheme.
Housing minister Grant Shapps however has argued that given the time delays in processing the sale of a property the findings of this survey are an inaccurate representation of the NewBuy scheme.
