More than half of first-time buyers say they are not interested in the Government’s £250,000 Firstbuy scheme.
A survey of 3,000 potential first-time buyers by Rightmove found that 34.1% said the scheme would make no difference to them because they don’t want a new property, and 21.8% said it would make no difference because they do not find the scheme attractive.
Under Firstbuy, the Government and developers will lend first-time buyers 20% of the value of a new-build property. The buyer will contribute a 5% deposit, and a mortgage will cover the remaining 75%. The purchaser will have to repay the 20% deposit in time.
The Rightmove survey found 16.4% of first-time buyers think the scheme makes them ‘much more likely’ to buy a home, and 21.7% said it would make them a ‘bit more likely’ to buy, with 6% unsure.
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Comments
Completely agree with @Neil Robinson. We need initiatives to aide the second hand market not fund more over-priced rubbish being spewed out buy the big new build companies.
MarkyMark
I thought that corruption in politicians and rank stupidity went hand in hand.
This is just another scheme that from the outset was doomed to failure. Whoever thought of it fitted in one or more likely both of the above.
The scheme was just a scam to try and keep new build prices up for the developers after the first time buyers summit. You remember the summit the one where first time buyers weren't allowed only the developers.
House prices are overvalued and falling. Tax payers money should not be wasted trying to prop them up.
100% of FirstimeBuyers know:
House Prices are over 50% OVERPRICED.
End of.
We all knew this anyway (see also the half a dozen similar schemes which Labour tried and failed), the homebuilders held out some hope that an extra £250 million would end up in their pocket, a few churnalists may have fallen for it, but the real question is - is Shappsy so stupid as to believe that persuading 25,000 first time buyers to overpay by £10,000 for a new house would solve anything? Maybe he is, maybe he isn't.
I don't like corruption in politicians, but rank stupidity scares me even more.
My sister has just bought a place with help via the council.
She had 7.5% deposit and the council matched it. The maximum she could sepnd upto was £210,000 which was fine for her.
The only terms were, you had to have lived in the borough for 10 years continously, and if you sell within 3 years, you have to pay back a% of profit.
If not after 3 years, they have no interest in the property.
Now that is a great scheme, funding runs out very quickly as well though.
I'm not surprised it's not been well received. The only people it benefits are the house builders. It will not stimulate the market and won't get people moving house.
it would make far more sense to target FTBs who have 5% saved up, and effectively 'top up' their deposit to the value of, say 15% of the purchase price in the form of a deferred secured loan to use on any property up to a certain value.
Sending FTBs to new properties won't create chains and won't kick start the market for people who want to sell. All it does is drive FTBs away from the genuine market.
16.9% of first time buyers would prefer a front door that's blue.