Hopkins in Greenwich to see help to buy in action
Published by Brian Church for 24dash.com in Housing
Housing Minister Kris Hopkins has visited the flagship £300 million New Capital Quay development by Galliard Homes to see how the government’s help to buy initiative is working in London.
Organised by the Home Builders Federation as part of the HBF annual industry luncheon, Hopkins was provided with a tour Tuesday of the new homes development in Greenwich by David Galman, group sales director at Galliard Homes. The minister also met with new resident Simon Rose, who used help to buy to purchase a home at New Capital Quay.
Hopkins said: "The help to buy scheme is offering a valuable alternative to the Bank of Mum and Dad to thousands of aspiring homeowners across the country, enabling them to buy newly-built homes with a fraction of the deposit they would normally require.
"I was pleased to meet Simon and hear how the scheme has helped him buy his new home, and to hear from Galliard Homes how the New Capital Quay development will become a thriving neighbourhood so close to Greenwich’s historic maritime centre."
The development provides a total of 980 mixed tenure homes, with affordable housing and 658 private sale apartments, located in a series of contemporary waterside buildings. Prices at the scheme initially started from £295,000. Once complete, the development will provide a new flagship Waitrose superstore, riverside bars, restaurants, cafes, commercial space, art gallery space, a new Greenwich heritage museum, central concierge, 24 hour on-site security and secure underground parking.
Since the launch of the help to buy initiative in April 2013, 75 homes at New Capital Quay are being sold to purchasers using the scheme; an average rate of seven sales per month, with the actual help to buy sales rate increasing significantly since Phase 2 was launched in October 2013.
Stewart Baseley, HBF executive chairman, said: "Help to buy equity loan is increasing demand for new homes and the industry is increasing its output as a result. People’s inability to buy in recent years has been the biggest constraint on the industry’s efforts to build more homes. If people can buy, builders will build. Help to buy is allowing people who can afford to buy a home to do so, meaning builders can get on with building the homes the country needs.”
There are two parts to the scheme - the equity loan and the mortgage guarantee. With the equity loan, which was launched in England in April last year, in Scotland in September, and in Wales in January 2014, buyers can put down a deposit of just 5%. This has to be on a new build, and it enables them to take out a mortgage of up to 75% of the property's value. The difference is made up with an equity loan of up to 20% from the government.
The mortgage guarantee, which began across the UK last October and will run until the end of 2016, offers a government guarantee against losses for lenders who are prepared to offer mortgages to people with only a small deposit.