NewBuy’s familiar ring is a good thing

Everyone in the industry is talking about NewBuy Guarantee - the government scheme to entice home buyers to the market - but the reception has been mixed.

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One of the main criticisms levelled at the scheme is that it is simply a revised version of an old Right to Buy scheme introduced by Margaret Thatcher in the 1980s. But is that necessarily a bad thing?

Arguably problems with the original Right to Buy scheme only began to emerge after it was tweaked some years later by capping discounts at £38,000.

The new model caps discounts at £75,000 on Right to Buy property sales so it could be viewed as a similar but not identical animal.

There is no doubt that the housing market needs a stimulus, so we should welcome activity which looks to innovate in this area and help people who still dream of buying their first home.

Those who remember the 1980s Right to Buy scheme will recall its positive effect on communities, as the proportion of owner-occupiers in a block increased, providing stability and pride in the property.

A return to that mentality can only be a good thing. The role of advisers becomes even more important when such schemes come into play.

It is crucial that those using the scheme understand the implications of buying a house and the importance of keeping up mortgage repayments.

It is also essential that first-time buyers take steps to ensure adequate protection is in place to offer a safety net as they enter the housing market.