The HBF last reported that reservations topped 400 in May, but has told the Council of Mortgage Lenders (CML) that more than 600 reservations have now been agreed, although the number of completed transactions is expected to be lower.
The HBF have yet to compile the number of completed transactions that have taken place since the scheme’s launch.
The scheme enables lenders to offer mortgages for up to 95% of the value of a newly-built property, partially underwritten by guarantees provided both by the government and the builder of the new home. The scheme was launched with the aim of selling 100,000 new homes over the next three years.
In the CML’s latest News & Views, the trade body said that low transaction levels are to be expected.
“The scheme was only launched in the spring and property purchases in England can take some time to complete. The scheme is gathering momentum in a way similar to the earlier FirstBuy and Home Buy Direct initiatives, both of which gathered pace after several months.
“The scheme may get a further boost as builders step up marketing activity as we move towards the main autumn home-buying season. That may trigger more enquiries from consumers, particularly as they become more familiar with the scheme and how it works.”
Lenders including NatWest, Barclays, Nationwide Building Society, Abbey for Intermediaries and Halifax all offer NewBuy products and 18 house builders are participating in the scheme.
The NewBuy scheme only operates in England; however the CML said it is working with Scottish government to launch similar initiatives throughout the UK.
“We are already working with the Scottish government and Homes for Scotland on a scheme similar to NewBuy called MI New Home. The Scottish scheme is expected to launch in September.
“Meanwhile, the Welsh government has begun discussions with interested parties on a similar initiative, and we will be taking part in these as they continue in the coming weeks. Finally, exploratory discussions have also begun in Northern Ireland.”
