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UK First-Time Buyer Scheme to Help Property Market

UK first-time buyer scheme to help property market

The UK government’s new scheme for first-time buyers is good news for the residential property market, according to UK Business Property.

The new £250 million scheme, revealed by Chancellor George Osborne, will see buyers having to put up a 5 per cent deposit, while the government and homebuilder will contribute 10 per cent each, and the remainder is covered by a loan, propertycommunity.com reports. The scheme applies to new properties only.

The British Property Federation reportedly estimates that the Firstbuy Direct scheme will help some 10,000 individuals onto the housing ladder.

Despite this, propertycommunity says the move has been criticised for being insufficient by some. The website cites comment from Zoopla’s Nicholas Leeming, who says the scheme could reduce average deposit required by a first-time buyer from around £25,000 to £6,250.

“This is a very appealing prospect, but Osborne’s scheme won’t go beyond scratching the surface of the problem faced by the vast majority of first time buyers, as it is exclusively for new build properties and only around 11,000 buyers will benefit, a fraction of the overall number of potential first timers,” Leeming is reported as saying.

However, other media reports accuse the package of “propping up” an unsustainable property market. But for those involved in the property sector, from providing lease plans to 360 virtual tours, it is likely to be appreciated.

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