By the end of 2012, 1,522 home purchases had been completed under the Government’s NewBuy Guarantee scheme in England.
Figures from the Department for Communities and Local Government today show the Government’s liability increased to £15.4m over the same period time while it incurred no costs.
The main aim of the Government-guaranteed scheme is to ensure that mortgages of up to 95 per cent can become more widely available on new-build homes.
The number of completions in the final three months of 2012 was more than double that of the first six months of the scheme.
Between March, when the scheme was launched, and the end of June, 253 house purchases were completed under the scheme. Between July and September, 376 completions were achieved but between October and December, the total figure was 893.
The NewBuy scheme gained a boost last month when the Royal Bank of Scotland announced it would be offering products through intermediaries for the first time.
In January, Barclays became the first lender to get capital relief on its range of NewBuy products.
Mortgage Advice Bureau new homes director Andy Frankish: “In the first two months of 2013, we have seen our new build activity almost double in volume, and NewBuy is becoming the product of choice for people seeking higher LTV purchases. This has been boosted by the attractive rates in the market and there are even better prospects with direct-only lenders planning to launch intermediary products.
“The fact that NewBuy can be used for part-exchanges means the scheme is now more viable for second-time buyers as well as new homeowners. We expect to see the rate of completions increase every quarter this year – so today’s figures are only the start.”