View more on these topics

Dismal start for Homebuy scheme

The Government has revealed that fewer than 500 people have taken a mortgage in the first six months of its Openmarket Homebuy scheme designed to help first-time buyers and key workers.

It was initially claimed that the plan would help 20,000 more families get a property by 2010 but it is hopelessly short of that target with just 462 completions by the end of March.

The scheme has been criticised by Advantage, one of the four participating members, for being too complicated, meaning that many advisers are not completing deals.

The Department for Communities and Local Government launched the scheme last October with Advantage, Nationwide and Yorkshire Building Society as the original three members and Halifax joining in March.

Advantage managing director Keith Dearling says: “It has not been the success that the Government wanted it to be. It seems to be complicated for advisers and for the Homebuy agents that deal with the client and pass it to the IFA.

“There is a demand but advisers are not always closing the deal. Changes are required and if we are consulted, hopefully we will have some input.”

The DCLG puts the poor figures down to the scheme being in its infancy and the traditional housing market dip over Christmas.

A DCLG spokesman says: “There has been interest from over 10,000 people and more than half of the 462 completions came in March so things are improving.”

Recommended

A fistful of pounds

Neil Woodford’s income funds were once again the lynchpins of what has turned out to be a very up and down Isa season.

Half of advisers still in dark on new definitions

Nearly half of protection advisers are unaware that critical-illness definitions are changing at the end of April, according to a survey by The Exchange on behalf of Royal Liver.

Rate-rise looms as inflation hits 3.1 per cent

Inflation hit 3.1 per cent in March prompting speculation of a quarter point interest rate rise next month. The Bank of England governor Mervyn King has therefore been forced to write to the Chancellor to explain why CPI inflation is over a percentage point above the 2 per cent target.In the letter, King says that […]

Income revamp for Jupiter fund

Jupiter is to restructure its £13.5m North American fund to develop a stronger income stream.

India correction: a terrific entry point?

By Kunal Desai, head of Indian Equities, Neptune A key concern for investors who were looking at India afresh has been the rich valuations and strong prior performance. We view the correction in the market through short-term growth concerns from demonetisation as a terrific entry point for the long-term investor. Investors should not be overly concerned […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment