Despite reports of consumers being squeezed and the country being plunged back into recession, Chris Endsor, chief executive of Miller Homes, (pictured below) believes this year will see significant change for the better within the property market.
He said: “The year has begun on a positive footing for homebuyers, with the recent announcement that the Bank of England’s base rate will remain at 0.5 per cent certainly giving a welcome boost to those looking to purchase a mortgage.
“ Couple this with falling inflation and potential buyers and existing home owners alike can garner greater confidence from the current conditions.
“At Miller Homes we have been helping buyers onto the property ladder for over 75 years and in that time we have seen our fair share of ups and downs.
“The good thing for buyers in the current climate is that the Government continues to back new buyers by providing schemes like Firstbuy and the forthcoming NewBuy mortgage guarantee scheme, which make a credible difference to people’s chances of achieving their home-owning dreams.”
FirstBuy is an equity loan scheme providing first time buyers who qualify with an equity loan of up to a maximum of 20 per cent of the purchase price, meaning they only have to fund the balance of the purchase price (as little as 80 per cent) by means of a conventional mortgage, savings and any deposit where required.
The NewBuy mortgage guarantee scheme aims to encourage lenders to increase the availability of mortgages to purchasers with a deposit of five per cent. The scheme, which is due to launch in this month, offers 95 per cent loan-to-value mortgages that will be available to people spending up to £500,000 on a new build property.
“As well as Government schemes designed to help buyers into the market, developers offer a range of incentives to help people onto or up the property ladder. At Miller Homes this includes home exchange scheme, deposit match scheme and recommend a friend and receive £1000 from Miller Homes* in addition to our shared equity schemes.
“Despite the white noise about recession and economic gloom, the current conditions for buyers really are very favourable. Developers and the Government are doing all they can to help purchasers achieve their home-owning dreams and keep the property market moving. Although the days of easy lending are over, buyers are being tempted into making sound investments by sensible means.”.