Both the private and public sectors saw substantial increases as 13,307 new homes were registered in the UK, the largest reported monthly figures since November 2007. This figure equates to a 21 per cent increase year-on-year (11,018, March 2010) and a 49 per cent increase on February’s figure (8,917).
Indeed, not less than half a mile from our national headquarters in Bovey Tracey, we had been watching a derelict patch of land, where Cardew Tea Pottery once stood, become overrun, as no housebuilder wanted to take up the planning permission won on it.
But Taylor Wimpey, one of our clients, has now purchased the site for over 100 new homes, some of which will be affordable, in an area that has traditionally been too expensive for locals and first time buyers. And wherever you go, up and down the country, where abandoned construction sites were boarded up, there is once again activity.
This upturn may in part be down to government initiatives, such as the FirstBuy scheme, while developers are creating their own incentives. Taylor Wimpey, one of the UK’s largest housebuilders, recently announced that it has secured funding to help over 1200 first time buyers across England get on the property ladder.
FirstBuy, which was unveiled in the Chancellor’s Budget earlier this year, works through a joint loan of 20% from the Government and Taylor Wimpey, which means that eligible purchasers only need put down a 5% deposit and obtain a 75% loan-to-value mortgage. The loan is repayable at the end of the 25 year mortgage term or when the property is sold. To be eligible, purchasers’ total household earnings should be less than £60,000.
Kevin Belsham, national sales and marketing director for Taylor Wimpey, comments: “FirstBuy enables us to work closely with the Government to help more people buy their first home. An increase in the number of first time buyers entering the market is also good news for those further up the chain. We believe that this scheme will make all the difference to those who can afford the monthly repayments on a mortgage but not the hefty deposit. With only 80 per cent of the property’s value to finance, buyers will have access to a wider choice of mortgage products and more competitive interest rates.”
Indeed, we wish Taylor Wimpey all the best in helping to regenerate the site in Bovey Tracey, and we will be there to help them with any snagging cosmetic repair work required, as the properties near handover.