FMB Welcomes Government Help for First Time Buyers

Monday 12th March 2012 – FOR IMMEDIATE RELEASE

The Government’s ‘NewBuy’ mortgage indemnity guarantee scheme which aims to provide  higher-value mortgages for first time buyers is a welcome boost to the housing market, says the Federation of Master Builders (FMB)

The scheme aims to help up to 100,000 buyers gain access to higher loan-to-value mortgage products to purchase new homes and stimulate new house building.

Brian Berry, FMB Chief Executive said:
“Lack of affordable finance is still the greatest constraint for first time buyers wanting to get on the housing ladder. The result is that the average age of the first time buyers is now 37.”

Berry continued:
“It is good that the Government is making considerable efforts to widen access to the scheme to smaller builders as small building firms still deliver around a third of our housing annually and are essential to any attempt to increase housing output. They are also best placed to bring forward the small brown-field sites that are essential to meeting our needs without placing undue pressure on green belt land.”  

Berry concluded:
“While small house building firms will need to examine the details and make a decision on whether the scheme will work for their business, we urge small house builders to at least look at the details as it is a scheme with considerable potential.”