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NewBuy 'is helping builders not buyers'

The government's NewBuy scheme has been designed to help developers primarily and first-time buyers to a lesser degree, a sector expert has claimed.

Paul Holmes, managing director of Firstrung, said the initiative is one that is not targeting the consumer, but is there instead to ensure developers are able to offload their existing housing stock.

Indeed, Mr Holmes argued that if developers cut the price of their properties to offer better value to homeowners then the scheme would be extremely worthwhile - it is his belief that the majority of new-build homes across the UK are in fact up to 25 per cent overvalued - but in its present guise there is only really one group that is benefitting.

He commented: "The NewBuy scheme is being introduced not to help out first-time buyers - people really need to take on board who it is helping - it is helping property developers and builders first.

"That is why the coalition government have pushed it so hard because it helps the builders, it doesn't help first-time buyers."

Mr Holmes added that the initiative is all about "maximising profits", with little regard for those who are left to foot the bill.

He concluded that the problem of excess new homes is one that needs addressing, but NewBuy is neither a long-term solution or even the right one.

According to the latest data from the Homes and Communities Agency (HCA), the government has seen significant success with its FirstBuy scheme so far this year, with 3,499 homes delivered as part of the project during the first six months of 2012.

Of the new homes delivered by the HCA during the year so far, 96 per cent came through the new Affordable Homes Programme, with the government setting a target of up to 170,000 new homes to be built across the country by 2015. 

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