Six of the UK’s biggest house-builders have sold just five homes between them under the Government’s NewBuy scheme in the two months since its launch.
The Telegraph reports figures from Canaccord Genuity, which contacted the top 10 house-builders in the UK to find out how many homes have been sold.
Six responded, revealing that just five sales have so far completed under the scheme, which launched in March.
Canaccord Genuity analyst Alastair Stewart told the Telegraph: “Having maintained a uniformly upbeat assessment of the scheme in their public statements, it appears there is mounting frustration among the builders.
“The impression was that high rates and tough credit scoring were deterring or preventing all but a tiny proportion of the scheme’s potential target market.”
Under the scheme, announced in the Government’s housing strategy in November, lenders will offer 95 per cent LTV mortgages for new-build properties against a mortgage indemnity guarantee funded jointly by house builders and the Government.
At the scheme’s launch, NatWest, Barclays and Nationwide Building Society launched specific products for the scheme, but all three have since increased their rates.