North East uptake on NewBuy strongest in UK
One of the UK's leading housebuilders has sold more homes in the North East as part of a government backed mortgage indemnity scheme than anywhere else in the UK.
Persimmon Homes North East sold 66 new properties in 2012 under the Newbuy Guarantee scheme, which aims to help prospective homebuyers who only have access to five per cent deposits.
Under NewBuy, which was developed by the Home Builders Federation and Council of Mortgage Lenders, 95 per cent mortgages are available to existing homeowners and first-time buyers on new-build properties worth up to £500,000.
The popularity of the programme is another piece of good news for the region's housing market, which has been showing healthy signs of growth over the past 12 months.
John Eynon, managing director for Persimmon Homes North East, believes that strong NewBuy completion statistics, along with a six per cent rise in visitor rates at developments across the North East, is excellent news for the region's housing market.
He said: "The take up of the government backed NewBuy mortgage product has helped our region, with a steady increase in customers purchasing a home with a NewBuy mortgage.
"House buyers in our region have also been helped by the cost of mortgage loans reducing slightly as lenders access the Government's Funding for Lending Scheme and pass the lower funding costs through to our customers."
Persimmon Homes has recently opened new developments in Gateshead, Newcastle and Ashington as part of its investment strategy for new homes in the North East.
John added: "A critical part of our strategy is the continued investment in new land to support the growth of Persimmon within the region.
"The UK housing market continues to be challenging and mortgage availability remains the key constraint, however we remain confident of the future successful growth of Persimmon in the North East."