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George Osborne aims to help first-time buyers struggling to get onto the property market.
The chancellor has created a £250million assisted deposit scheme, which means around 10,000 families may be eligible for help in buying a new property.
To qualify for the FirstBuy scheme it is expected households will need to have an income of less than £60,000 and be able to put down a five percent deposit on their new home.
A loan, worth up to 20 percent of the value of the property, will then be jointly funded by the government and housebuilders.
It will be interest-free for five years and only repayable when the house is sold.
Dafydd Hardy, co-director of Dafydd Hardy Estate Agents, which has offices across Gwynedd and Anglesey, gave the announcement a cautious welcome.
“Anything that helps the housing market in North Wales is a good thing but why restrict a scheme aimed at helping first-time buyers to new-builds?” he said.
“There are thousands of existing properties in this area which are suitable for first-time buyers, many of them at realistic prices.
“Hopefully though it will encourage builders to start developing again, something they have been reluctant to do over the last 12 months.
“It’s certainly not a quick fix though as it will take most developers six to nine months to get their projects off the ground.
Offering an alternative, Dafydd said: “I think a better option would involve getting the main lenders to contribute to a central fund which would be available for first time-buyers looking for a mortgage and offer 95 percent loans.
“In addition the Government could offer affordable loans for the five percent deposit which would help reignite the housing market in our area.
Dafydd, who is a chartered surveyor with over 30-years experience, does not think the chancellor’s scheme will have a major affect on house prices across the region.
“We’ll have to analyse the details but as the plans are only for new-builds I can’t see house prices in North Wales going up or down as a direct consequence of the FirstBuy scheme.
“What could have an effect on house prices are the Government’s plans to offer more help to small businesses.
“North Wales is the perfect location for companies producing hi-tech, hi-value goods and services.”
“If more of these types of businesses can be encouraged to start up and come to this area we’ll see an improvement in the housing market,” Dafydd added.
March 23, 2011