NORTH East people looking to buy a newly-built property could see the average deposit they need slashed to £6,000 under Government plans.
They currently need an average £24,000 to make up an 20% deposit for newly built properties – the bedrock of the first-time buyer market – which is freezing huge numbers out of home ownership.
But that will be reduced to 5% or an average of £6,000 for new build homes under a new indemnity scheme, which ministers also hope will boost the economy.
Based on average 2010 house prices this could mean a 5% deposit of around £7,000 for a home in Newcastle compared to a 20% deposit of £28,000. The figures in Durham would be £5,300 instead of £21,400.
The Government and house builders are helping provide security for loans, meaning the lender will be able to recover losses if the home is repossessed and sold for less than the outstanding mortgage.
Launching their housing strategy yesterday, David Cameron and Nick Clegg said they wanted to support the construction industry and make the “dream of home ownership” a reality for more people.
The developments came as a report from Rightmove found house sellers have dropped their average asking prices by the largest cash amount for almost four years.
All regions in England and Wales showed monthly price falls, the first time this has happened in more than three years.
The number of new people putting their home on the market has also shrunk to levels last seen in 2008.
