David Cameron announced this week that house buyers will be able to borrow up to 95 per cent of the value of their new homes – new builds so the construction industry will get a welcome boost – which he hopes will “get Britain building again”.
It’s a welcome boost to the property market in Beverley, which has been hit hard by the difficulty of borrowing to by new homes and should give a boost to new housing schemes in Hopwood, on Manchester Street (Hey Mount) and on Darnhill, as well as stimulate new schemes.
It’s hoped that the mortgage indemnity scheme to be underwritten by the Government will help hundreds of first-time buyers in Beverley make their first step on to the housing ladder.
Following the boom and subsequent bust of the mid 2000s, borrowing became a lot more difficult for Beverley’s would-be house owners. High-risk mortgages had brought many banks and building societies to their knees – Northern Rock a great example – and many first-time buyers were being asked to stump up as much as £40,000 as a deposit on their first home.
Mr Cameron recently told the CBI: “When first-time buyers on a good salary cannot get a reasonable mortgage, the whole market grinds to a halt.
“And that ricochets around the economy, affecting builders, retailers, plumbers – all the people that depend on a housing market that is moving.
“If we don’t do something like this we are not going to get this vital market moving… We will restart the housing market and get Britain building again.”
Ministers will also do their best to kick-start some of the 130,000 building projects which are estimated to have been approved but delayed by funding problems, many of them in and around Beverley.Hu17.net - It's all about Beverley