Shared equity helps new home rise
Ruth Matthew, 26th August 2012
- Making properties tradable - part 3
- Typical time on the market falls for unsold property across the UK
- Remortgaging levels are low but some reports suggest a proportional increase
- Rowlinsons Solicitors awarded prestigious legal honour
- Law Society releases new flood risk practice note
- Precise Mortgages expands panel
- Signs for optimism in mortgage lending
- The Law Society Flood Risk Practice Note
The FirstBuy shared equity scheme has helped Persimmon Homes to an increase in new homes sales.
The government-backed initiative has enabled more first-time buyers to get a foot on the housing ladder by making it easier to secure an affordable mortgage.
Persimmon said it had a shared equity interest in 30% of its first-half of 2012 new homes sales, with 220 new homes sold through the NewBuy scheme, which encourages 95% loan-to-value mortgages.
The company has also increased the supply of family homes in affluent areas, resulting in a 5% rise in private reservations in the first half of this year compared to same period in 2011.
Persimmon saw a 7% increase in average selling prices to £171,206 with completions up 6% to 4,712 new homes.
Despite their encouraging results Persimmon is calling on mortgage lenders to relax lending criteria in order to further boost demand.
Persimmon chairman Nicholas Wrigley said: "We anticipate continued firm underlying demand for new homes but this will remain constrained by the low level of mortgage availability.”
Tags: Persimmon, NewBuy
No comments yet.