In response to the launch last week of the government’s Housing Strategy , which included the announcement of support for new home buyers, Gordon Isgrove, director at commercial property adviser GVA in Bristol, comments, “For all those who have been trying without success to take their first step onto the housing ladder and have been let down because of difficulties obtaining finance, this news will come as a welcome early Christmas present.
“The importance of this announcement cannot be underestimated, as the availability of 95% mortgage finance will give the house-building industry the boost it needs to start building again, with a positive knock on effect throughout the wider economy.
“There are a number of schemes in the pipeline where house-builders are waiting for confidence to return to the market before they start building. Developers should feel encouraged with the introduction of the Get Britain Building Fund, and the opportunities they now have to compete for a share of a £400 million kick start fund.
“This news will bring movement back into the South West housing market and bring many house hunters some Christmas cheer.”
The government estimates that up to 100,000 people in England will be helped with its new 95% mortgage scheme, which means that home buyers will be able to purchase a new home with a 5% deposit.
Gordon continues, “However, some will argue that the fund is not sufficient and that more money is required.
“Last year saw the lowest number of new homes built in England since 1923; yet according to the Home Builders Federation we need to build over 230,000 new homes a year.
“The housing sector requires more support; liquidity is needed across the housing market through increased mortgage lending to the provision of development finance. Increased supply of development land for house building is also required – the government is working on this through the delivery of surplus public sector land and changes to the planning system.
“New housing starts and completions are slightly up for 2011 according to government statistics; however these are still well below the long term average and also well below the estimated demand for new housing required.
“More initiatives are still required to support an important industry to the South West and provide affordable housing for local communities.”
