Builders look to make it a buyers' marker again

Apr 16 2009 by Paul James, The Journal

TWO new offers were announced by North East housebuilders yesterday in a bid to pull buyers back into the depressed housing market.

Flat-pack Ikea flats and houses in Gateshead are now available through the Government’s HomeBuy Direct scheme, in which buyers only need a mortgage of up to 70% of the value of the property.

The loan for the remaining 30% is interest-free for the first five years meaning no rent has to be paid until after this period. The loan only has to be repaid when people come to sell their home.

Elsewhere the Gladedale group announced its reservation fees from £99 to £9.99 for the remainder of April on all its developments across the region.

The offer on Live Smart@Home’s so-called ‘flat-pack’ homes opposite Gateshead Stadium comes on the back of previous offers that have included £5,000 worth of gym memberships and travel passes.

John Hanson, acting managing director of Live Smart @ Home, said: “Even though the BoKlok development is truly innovative, like all developers we have struggled to sell homes because our target market is being understandably cautious in the current climate and in many cases they have been unable to secure the large deposits that mortgage lenders are now demanding.

“HomeBuy Direct is a new and exciting initiative from our perspective because it is particularly aimed at the first-time buyers who we know want to buy BoKlok home, but cannot afford the deposit

“The big building societies such as Nationwide and Halifax are signed up to HomeBuy Direct, so people should now have no problem funding the purchase of their home through this route.”

And Richard Jones, sales director of Gladedale in the North East, said he was hopeful for the coming months.

He said: “We are really pleased to be able to slash the reservation fee for the remainder of April to celebrate the arrival of spring.

“Many homebuyers are keen to move in time for summer, which is just around the corner.”