Details have been revealed about the Welsh Government's 'Help to Buy' scheme to aid first-time home buyers. The programme will provide £170 million to help people onto the property ladder.
Under the terms of the scheme, prospective buyers could apply for a loan of between 10 and 20 per cent of the value of a property, provided they can supply a five per cent deposit
Loans - which would be interest free for five years - would be available for new-build homes worth up to £300,000. It's hoped that the scheme, which begins in January, will create 5,000 new homes in Wales over two and a half years. Lynn Courtney reports.
Housing Minister Carl Sargeant announced details of the new scheme while on a visit to a housing development in Newport this morning.
The Welsh Government will provide eligible buyers with loans of up to 20 per cent of the purchase price on new build homes. The loans will apply to homes with a value of up to £300,000 built by participating home builders.
There's no doubt that the recession and a tightening of mortgage lending have made getting onto the property ladder much tougher in recent years. Buyers without a large deposit are increasingly finding that home ownership is not an option.
The financial crisis has led to a dramatic fall in house building activity as builders scale back their plans in line with buyer demand.
The Help to Buy - Wales scheme beginning in the New Year, will help more people get onto the property ladder and will provide a much needed boost to the building industry in Wales. The investment will support the purchase of around 5,000 news homes in Wales during the next two and a half years.To limit scope for confusion, the scheme in Wales matches the UK Government scheme quite closely, but it has the added benefit of being easier for small home builders to access.