Scheme helps buyers onto property ladder
08 April 2015
A Government-backed scheme has helped dozens of first time buyers move into their dream home in Essex.
More than 60 per cent of the houses sold at Persimmon Homes’ popular Neave Place development in Romford have been bought using the Help to Buy scheme.
Under the Help to Buy scheme, people buying a new build only need a five per cent deposit along with a 75 per cent mortgage while the Government supplies a 20 per cent equity loan. In England, this loan is interest free for the first five years. From year six a fee of 1.75% is payable and will rise annually by RPI inflation plus 1%.
Across the country the scheme has meant that thousands of people with limited savings have been able to afford properties which would have otherwise been out of reach. Norman Sharpe, sales director at Persimmon Homes Essex, said: “The Help to Buy scheme has been exceptionally popular at many of our developments across Essex, not least at Neave Place where six in every 10 transactions have been completed using the Government-backed initiative.
“Many people struggle to find a large deposit to put down on a new property, particularly those taking their first step onto the property ladder. But the scheme is not limited to first time buyers. Many buyers have been able to move to a bigger property in this way. This scheme has made a significant difference and has given the property market a welcome boost.”
A second phase of the Neave Place development in Noak Hill Road was released in September last year, made up of 105 units. There are 19 two-bedroom houses, 69 three-bedroom properties and one four-bedroom house as well as 15 apartments. It follows the success of the first phase of the development, which was released in the second half of 2012.
Norman added: “Neave Place 2 is a delightful development which is perfect for both first time buyers and families needing more space. It’s just four miles from the centre of Romford, one of the largest commercial, retail, entertainment and leisure districts outside of central London. However, Neave Place also benefits from being in a prime semi-rural location within minutes of a number of fantastic parks and woodlands, including Havering Country Park and Bedfords Park.” The site is also just three miles from the M25 and benefits from a London bus service within Zone 6.