Homes boost scheme is launched

A Government scheme to boost the housing market has been launched at a Staffordshire housing development.

George Wimpey Homes has opened up its Fallowfields scheme in Huntington, near Cannock, to HomeBuy Direct.

The new initiative, which has only just been launched nationally, is part of a package of measures put together by ministers to help stop the downward slide of the economy.

It is aimed at helping first-time buyers get on the property ladder through an interest free equity loan. The HomeBuy Direct scheme is open to households with an income of less than £60,000.

An interest free equity loan is available for up to 30 per cent of the value of the property, co-funded by the Homes and Communities Agency and George Wimpey.

No interest is charged on the equity loan for the first five years and the purchaser has to contribute the remaining equity through an agreed mortgage.

Buyers are also able to pay off the equity loan in instalments at any stage after the first 12 months or sell their HomeBuy property on the open market if they wish with the equity loan being repaid by way of a share of the sales proceeds.

Applicants will also be subject to an affordability check, designed to assess the size of equity share that they are able to afford and sustain. A buyer who qualifies for a mortgage of £140,000 could buy a property worth up to £200,000. It is hoped the HomeBuy Direct scheme could help as many as 18,000 first-time buyers onto the property ladder.

The Government has injected £400 million into the scheme.

Carol Edwards, sales and marketing director for George Wimpey in the West Midlands, said: "The new HomeBuy Direct scheme is a great way for purchasers to afford their first home. It's designed to overcome the hurdles of high mortgage costs and larger deposits, which we know are preventing many people from buying.

"There are a number of our new homes available through the scheme and we anticipate that interest for them will be high."

Paul Spooner, regional director at the Homes and Communities Agency, said: "Through HomeBuy Direct we are offering a golden opportunity for local people who have been priced out of the property market. Our £400 million investment nationally will also act as an important stimulus to help restore confidence in the housing market."

The Fallowfields development is made up of 85 homes including three and four bedroom townhouses and three-bed semi and detached homes all with a garage.

Prices range from £164,995 up to £189,885. The site is close to Cannock Chase and has tree-lined avenues with established mature trees plus a host of natural green areas within its boundaries.

The Homes and Communities Agency is the single, national housing and regeneration agency for England and aims to create opportunities for people to live in high quality, sustainable locations. The agency provides funding for affordable housing and to bring land back into use.