Housing Minister Carl Sargeant has announced a new scheme which will help buyers of new homes and provide a major boost to home builders across Wales.
On January 2, the Welsh Government launches its £170 million Help to Buy – Wales shared equity loan scheme, which it claims will make home ownership easier for buyers of new homes who have small cash deposits.
On a visit to a Redrow housing development in Newport Carl Sargeant said: “There’s no doubt that the recession and a tightening of mortgage lending have made getting onto the property ladder much tougher in recent years. Buyers without a large deposit are increasingly finding that home ownership is not an option.
“The financial crisis has led to a dramatic fall in house building activity as builders scale back their plans in line with buyer demand.
“The Help to Buy – Wales scheme beginning in the New Year, will help more people get onto the property ladder and will provide much needed boost to the building industry in Wales. The investment will support the purchase of around 5,000 new homes in Wales during the next two and a half years.
”To limit scope for confusion, the scheme in Wales matches the UK Government scheme quite closely but it has the added benefit of being easier for small home builders to access.
“I therefore urge all builders, large and small, to register now so that they are ready for the first loans being made available to buyers in January.”
Richard Price, the Home Builders Federation’s Planning and Policy Advisor in Wales said: “The launch of Help to Buy Wales is an extremely welcome step that will give many more people in Wales the opportunity to buy a brand new home.
“It shows the Welsh Government’s commitment to seeing an increase in home building in Wales. The scheme will lead to increased economic activity and many new jobs in the home building industry and the supply chain, giving a vital boost to the Welsh economy.”
Steve Morgan, Chairman of Redrow Homes added: “We very much welcome this much-needed boost for the Welsh housing market and look forward to working with the Welsh Government to help more people get onto, and move up, the housing ladder.
“The Help to Buy – Wales scheme will provide the Welsh housing market with essential momentum and will ensure that more homes get built. It will also create valuable jobs in the construction industry.”
Paul Smee, director general of the Council of Mortgage Lenders said: “We have worked closely with lenders and the Welsh Government to ensure the Help to Buy – Wales shared equity loan scheme works for the specific Welsh market conditions. We believe the scheme will have a positive effect in improving conditions for home-buyers which the CML fully supports.”
Welsh Conservative Shadow Housing Minister, Mark Isherwood AM, has welcomed the launch of a ‘Help to Buy’ scheme in Wales but reiterated his disappointment at the length of time its introduction has taken.
Mr Isherwood said: “At long last – Labour government support for home-buyers in Wales. While its introduction has taken far too long, I welcome the launch.
“It is the UK Government’s decision to ring-fence capital investment for this scheme that has forced Labour ministers to act in the interests of Wales.
“While England and Scotland introduced initial support for home-buyers last year, Labour ministers in Wales missed the boat. Their inaction remains a matter of great regret.
“This scheme is welcome. The length of time it has taken is not.”