Around 400 people have reserved new homes through the NewBuy scheme since its launch just nine weeks ago, according to fresh data released today by the Home Builders Federation (HBF).
These figures reveal an impressive start for the industry funded Government backed mortgage indemnity scheme, which was only introduced on 12 March. The initiative, which allows buyers to secure their new build home with a 5% deposit, is expected to deliver tens of thousands of new homes sales over the next three years.
Since its launch in March, the number of housebuilders and lenders registering for NewBuy has steadily increased, with the fifth lender, Santander launching its NewBuy product just this week.
The NewBuy figures is announced on the day that official statistics reveal a 15% fall in new homes starts in Q1 of this year compared to the corresponding quarter last year to just 24,140.
The further decline in housing starts demonstrates why NewBuy is vital for homebuyers and the new homes industry, given that developers are currently building fewer homes than since the 1920's, and fewer than half those required to meet housing need.
Stewart Baseley, executive chairman of HBF, who were part of the team that developed the NewBuy scheme, said: "Reaching 400 NewBuy reservations within weeks of its launch is a fantastic start and clearly demonstrates the customer demand for this vital scheme. These figures make us very confident that the scheme will deliver tens of thousands of sales over the coming years.
"As today's house building statistics show, we have an acute housing delivery problem. By enabling home buyers to purchase a new home, NewBuy will kick-start new home construction, creating economic growth and thousands of jobs across the country."