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Less than 100 Hampshire families use flagship mortgage scheme
9:06am Saturday 7th September 2013 in News
FEWER than 100 Hampshire families have bought a new home through a flagship Government scheme, new figures have revealed.
Only 89 mortgages have been handed out under the NewBuy initiative – allowing a deposit of just five per cent on new-build properties – in 15 months.
Across England, 3,749 NewBuy mortgages have been signed – a fraction of the 100,000 promised by David Cameron when the scheme was launched.
Labour branded the initiative an embarrassing flop, the latest in a long line of housing promises to have turned to dust.
‘Out of touch’ Jack Dromey, Labour’s housing spokesman, said: “Less than five per cent of the number promised have actually been helped on to the housing ladder.
“It shows how out of touch David Cameron is that, while he claims to have turned things around, home ownership still remains out of reach for many young families.”
But the Government insisted NewBuy was just one of several schemes that were getting the housing market “clearly moving again” and fulfilling the dream of home ownership.
They included the new Help to Buy scheme, which will eventually underwrite £130 billion of home loans on new and existing properties.
It is the first time that detailed figures, revealing the performance of NewBuy in each area of the country, have been released by the Government.
They show that, across Hampshire, the highest number of mortgages has been delivered in Basingstoke (33), followed by Southampton.
The scheme has also offered partexchange – allowing a builder to buy an existing property, when it sells a homeowner a newly-built property.
The much bigger Help to Buy is aimed at areas such as Hampshire, where sky-high prices have made home ownership an impossible dream for so many.
In Southampton, where the typical flat costs around £130,000 a buyer would be forced to find just £6,500 – instead of up to £26,000, as currently demanded.
Critics have warned the scheme risks creating another “housing bubble” – pushing prices up at the expense of buyers and destabilising the economy.
Housing minister Mark Prisk said: “The housing market is clearly moving again, through the range of Government-backed schemes on offer.
“That includes the industry-led NewBuy scheme, which today’s figures show has helped 3,749 people buy with just a fraction of the deposit they would normally require.”
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