PROPERTY chiefs have welcomed measures in George Osborne’s Budget to kick-start the housing market.
Initiatives announced by the Chancellor include providing £3.5bn in shared equity loans for a new Help to Buy scheme for those struggling to find mortgage deposits – plus an interest-free loan worth 20% of the value of a new-build house, available from 2014.
The Budget also promised a new mortgage guarantee, which would be able to support £130m loans to help people who cannot afford a big deposit and interest-free loans for five years will be offered to those buying new-build homes.
The buyer will need to find a 5% deposit with the loan worth up to 20% of the value of a home worth up to £600,000 and repayable when it is sold.
Michael Eastwood, managing director of Holmfirth-based Eastwood Homes, said: “This budget is encouraging for housebuilders.
“Generating the construction of new homes will be a good start for the whole industry as the benefits will pass down the chain to contractors, subcontractors, suppliers, appliances, furniture etc.
“However, they must be available to all housebuilders. Previous funding, including Home Buy, was mainly accessible by the national builders.
“We have a policy of working with local consultants, contractors and suppliers, so if these initiatives are accessible by smaller developers it will certainly assist in the wealth of the local economy.”
Richard Conroy, chief executive of Brockholes-based property developer Conroy Brook, said: “It is positive to see that the government recognises the importance of getting Britain building, as the local authorities and planners don’t and there is a logjam.
“The government is trying to force through these ‘top down’ measures to free things up, which is badly needed and very welcome.”
Wayne Gradwell, managing director at Persimmon Homes West Yorkshire, said: “We obviously welcome the Help to Buy initiative announced by Chancellor George Osborne.
“Since Christmas, we have already seen the market begin to improve with initiatives including FirstBuy and NewBuy.
“From the information released to date, we are very pleased that the Government recognises the importance that the new homes industry plays in the much needed growth of the UK economy.”
Said Mr Gradwell: “To meet demand, 2013 looks like being a busy year for Persimmon Homes West Yorkshire, with plans to open a further six sites in Bradford, Halifax, Rotherham, Leeds, and Castleford.
“The supply of new homes is an ongoing issue across the UK and our team is working hard to deliver a diverse range of local housing where it’s needed most through our brands Persimmon Homes, Charles Church, and Westbury Partnerships.”
