The Welsh Government is set to launch its own version of the Help to Buy shared equity scheme.
The details of Help to Buy Cymru have not yet been announced but minister for housing and regeneration Carl Sargeant said it will launch later this year.
Sargeant says: “I have been looking at a range of options to support buyers who are struggling to secure a mortgage or purchase an affordable family home. This support is intended to stimulate demand and encourage greater supply of new-build properties.
“A fundamental part of this strategy will be the launch of a Shared Equity Scheme: Help to Buy Cymru. We will be working with stakeholders to determine the scope and potential scale of a scheme over the summer in preparation for a launch later in the year.”
Sargeant confirmed the Welsh Government is still intent on launching its own version of NewBuy, although this has been put on hold until the UK Government releases details of the Help to Buy mortgage guarantee scheme, which was first tipped by Mortgage Strategy in February.
Sargeant says: “We have developed a NewBuy Cymru mortgage guarantee scheme. However this relies on a tri-partite relationship between Government, builders and lenders and we are seeking to secure the engagement of all parties in a viable scheme.
“The need for the UK Government to finalise the design of their Help to Buy: Mortgage Guarantee scheme have meant that lenders are unable, at this time to commit to NewBuy Cymru.”
NewBuy is only available in England but Wales was due to launch its version on 3 June. Scotland and Northern Ireland have already launched equivalents.
The Help to Buy equity loan scheme offers buyers a 20 per cent equity loan, interest-free for five years, which helps them buy a new build property from a participating housebuilder up to £600,000.
The scheme is open to first-time buyers and existing homeowners. The £3.5bn scheme is expected to help 74,000 homebuyers over the next three years. In January, the second element of Help to Buy is set to launch, a £130bn mortgage guarantee scheme.