Mr Shapps declared the NewBuy Guarantee open for business – a scheme that will enable an estimated 100,000 prospective and existing homeowners to buy their dream home with much smaller deposits than currently required.

The increased demand for new homes will also give a boost to housebuilders and the economy, and see thousands of workers returning to building sites across the country.

At the same time, the Minister announced details of the reinvigorated Right to Buy, which will give up to two million social tenants the opportunity to buy their council home with a discount of up to £75,000 and, for the first time, ensure that additional properties sold are replaced with new affordable homes for rent.

NewBuy Guarantee

From today three leading high street lenders and seven of the country’s biggest building firms will begin to offer mortgages on newly-built properties to people with just a five per cent deposit; a financial product not available anywhere else in the market. Other leading names, including smaller housebuilders, are expected to follow their lead in the coming weeks and months.

Today’s deals will mean that instead of a typical buyer requiring a £40,000 deposit for £200,000 property, they will now only need £10,000. The Government and housebuilders will help provide security for the loan, so if the house is then sold for less than the outstanding mortgage total the lender will be able to recover its loss.

The scheme, which has attracted strong support from many of the country’s biggest house-builders and mortgage lenders, will offer help for up to 100,000 buyers who would otherwise be frozen out of the market.

The deals will include:

Barclays who will offer 95 per cent Loan-to-Value mortgages on properties built by Barratt, Bellway, Bovis, Persimmon, Redrow and Taylor Wimpey at just 4.99 per cent fixed rate for two years and 5.89 per cent fixed rate for four years

Nationwide who will offer 95 per cent Loan-to-Value mortgages on properties built by Barratt, Bovis, Bellway, Persimmon, Redrow and Taylor Wimpey at just 5.69 per cent fixed rate for three years and 5.99 fixed rate for five years; and

NatWest who will offer 95 per cent Loan-to-Value mortgages on properties built by Barratt, Bellway, Bovis, Linden Homes, Persimmon, Redrow and Taylor Wimpey at just 4.29 per cent fixed rate for two years and 4.99 per cent fixed rate for five years.

In addition, Crest Nicholson will be joining the scheme imminently.

The NewBuy Guarantee will support an estimated 50,000 jobs in construction and related industries by increasing demand for newly-built homes.

The scheme will also help jumpstart the stalled housing market as people begin to move, ensuring more newly-built and older properties become available to buy.

Right to Buy

Mr Shapps also published final details of a revamped Right to Buy, which will significantly increase the discounts for two million social tenants in England.

For years, the discounts available under Right to Buy have steadily declined, putting the dream of buying a home out of reach for many tenants - fewer than 3,700 sales were made last year compared to a peak of 84,000 less than 10 years ago.

Ministers have made a key commitment that everyone should have the chance to own their own home, so from April tenants could benefit from a discount of up to £75,000, more than quadrupling the discount cap in London and trebling it in most other parts of the country.

Mr Shapps said the new Right to Buy would see no reduction in the number of affordable homes, with any additional homes bought under the scheme leading directly to the provision of new affordable homes for rent.

Councils will be able to sign an agreement with the Government for using the receipts from sales to build new affordable homes in their area. The receipts will only need to meet 30 per cent of the costs, mirroring the highly successful funding model used for the Affordable Homes programme.

Where receipts are not used locally they will be passed to the Greater London Authority and the Homes and Communities Agency, who will re-invest the money in new affordable housing across the country.

The Prime Minister said:

“Strong families and stable communities are built from good homes. That’s why I want us to build more homes and I want more people to have the chance to own their own home.

“We are acting today across the board to make this happen.

“We’re re-booting the right to buy scheme to increase discounts for two million tenants in social housing in England.

“And we’re delivering on our promise to offer affordable mortgages to buyers who might otherwise not be able to raise the money to buy a newly-built home.

“It’s no good hoping people will climb the property ladder if the bottom rung is missing. Affordable properties and available mortgages are vital.

“So we’re working with leading house builders and lenders to get the scheme underway.

“It’s a vital boost to the housing market, giving people good affordable new homes and backing thousands of jobs in construction in the process.

“This government doesn’t just talk about expanding home ownership: we’re making it happen.”

Housing Minister Grant Shapps said:

“This Government inherited a housing market in disarray, with millions of hard working people blocked from taking their first step on the housing ladder – their desire to buy a home no longer a dream, but a distant fantasy.

“We want to help everyone achieve their aspirations, and feel the pride of home ownership. So I’m delighted that from today the NewBuy Guarantee will give thousands of prospective buyers the chance to buy a home with a fraction of the deposit normally required.

“We’re also scrapping the miserly restrictions on the level of discounts under Right to Buy – great news for thousands of tenants who have done well for themselves and want to buy the home they live in.

“But we are determined to maintain the number of affordable homes for rent – so for the first time, homes that are sold will be replaced by a new affordable homes, helping councils meet housing need and getting the nation building again.”

Home Builders Federation Executive Chairman Stewart Baseley said:

“NewBuy will help thousands of people to meet their aspirations to buy a new home, freeing up the housing market and helping first time buyers and those unable to take the next step on the ladder.

“The scheme will also provide a vital kick-start for the house builders large and small who will be able to build the homes and create the jobs that the country desperately needs. The government deserves credit for backing NewBuy and enabling it to become a reality; it shows that housing is in its rightful place at the top of the political agenda.”

Council of Mortgage Lenders director general Paul Smee commented:

“We are delighted that three lenders are today launching mortgages under NewBuy, and that more are set to follow. These mortgages will help creditworthy borrowers who simply haven’t yet managed to build up a large enough deposit to gain access to finance to buy a newly built home. NewBuy is good news for home-buyers, and potentially good news for jobs and the wider economy too. Borrowers need to understand the implications of high loan-to-value borrowing, so we are pleased to support the initiative with clear consumer information to help people decide whether NewBuy borrowing is an attractive option for them.”

Notes to editors

NewBuy Guarantee Scheme

1. An estimated one million people, including 380,000 aspiring first time buyers, can afford mortgage repayments but are currently excluded from the housing market because they do not have a large enough deposit.

2. The NewBuy Guarantee Scheme is intended to boost housing supply and deliver a significant increase in access to affordable mortgages for those who can afford mortgage repayments but do not have large savings. Final details of the scheme were published today and can be found at: www.communities.gov.uk/housing/homeownership/newbuy/.

3. A recent survey by Rightmove found that 28 per cent of first-time buyers feel they will be more likely to buy once the NewBuy scheme launches; and that 24 per cent of first-time sellers feel that they will be more likely to buy.

4. 28,000 homebuyers have registered their interest in NewBuy with builders.

5. The Government has supported the Home Builders Federation and the Council of Mortgage Lenders in their development of the NewBuy scheme, which will be administered by Jardine Lloyd Thompson Group plc. All lenders and builders operating in England can now participate in the scheme, and will be responsible for forming their own commercial arrangements. More details can be found at: www.hbf.co.uk (external link).

6. Home buyers can buy new build properties constructed by a participating builder using NewBuy. A leaflet for interested buyers can be found at: www.cml.org.uk/cml/consumers/newbuy (external link).

7. 130 builders have registered an interest in participating in NewBuy with the Home Builders Federation. Of these, 76 are not members of the Home Builders Federation and will be accessing the scheme on a level playing field.

8. More lenders are keenly interested in NewBuy and plan to participate over the coming weeks and months. Halifax is working with 16 builders and will be launching a range of products specifically designed for the scheme in April. Santander is in the final stages of agreeing partnerships with selected developers and will start to offer its first NewBuy mortgages via intermediaries with established ties to these housebuilders by the middle of the year.

9. Lenders will still assess potential borrowers according to the usual underwriting and risk criteria. However, because of reduced risk profiles, lenders will be able to lend at a higher loan to value ratio than usual, meaning that potential home buyers need a smaller deposit. The following eligibility criteria will also apply:

the price of the property must be less than £500,000

homes bought through NewBuy must be a standard purchase – not shared equity or shared ownership

the property being purchased must be the applicants’ main home – not a second home or a buy to let investment

the applicants must be UK citizens, or have indefinite leave to remain in the UK.

10. Under the NewBuy scheme housebuilders will put 3.5 per cent of the sale price into an indemnity fund for each property sold, and the Government will provide additional security for the mortgage loan in the form of a 5.5 per cent guarantee. In the event of repossession, the lender will be able to recover any losses to the maximum covered by the borrower’s deposit and the home builder’s fund, and then call on the Government guarantee. If no claim is made builders can recover their contributions after seven years.

Right to Buy

12. Ministers have today published final details of the Right to Buy scheme, following a consultation. A copy can be found at: www.communities.gov.uk/publications/housing/righttobuyresponses.

13. Most Right to Buy discounts are currently limited by caps. These range from £16,000 in most parts of London to £38,000 in parts of the South East (full details in table below). From April, subject to parliamentary approval, tenants could benefit from a discount of up to £75,000, more than quadrupling the discount cap in London and trebling it in most other parts of the country.

Maximum Discount Limits under the current Right to Buy scheme

14. Tenants must have been public sector tenants for five years before they can qualify to purchase their home through Right to Buy.

15. The replacement of additional homes bought through Right to Buy will be funded using the same highly successful model as the Affordable Homes programme. Under this approach social landlords can meet the costs of new homes from borrowing against the future rental income, contributing from their own resources, including land, and grant funding from the Government. For the Right to Buy replacement scheme, receipts will substitute for grant funding for up to 30 per cent of total costs.

Source: http://www.communities.gov.uk

NewBuy was launched on Monday 12 March 2012. The initiative was developed jointly by the Home Builders Federation and Council of Mortgage Lenders. The Government is backing the scheme to help those home buyers who have found themselves excluded from sections of the market because they don’t have a large enough deposit.

NewBuy is able to assist up to 100,000 households in buying a new home. All mortgage lenders and house builders operating in England are welcome to join the scheme; that includes lenders and builders who are not members of the Council of Mortgage Lenders or the Home Builders Federation.

Further information for home buyers, builders and mortgage lenders can be found at http://www.communities.gov.uk/housing/homeownership/newbuy/.

Source: communities.gov.uk

The scheme aims to help up to 100,000 buyers gain access to higher loan-to-value mortgage products to purchase new homes and stimulate new house building.

Brian Berry, FMB Chief Executive said:
“Lack of affordable finance is still the greatest constraint for first time buyers wanting to get on the housing ladder. The result is that the average age of the first time buyers is now 37.”

Berry continued:
“It is good that the Government is making considerable efforts to widen access to the scheme to smaller builders as small building firms still deliver around a third of our housing annually and are essential to any attempt to increase housing output. They are also best placed to bring forward the small brown-field sites that are essential to meeting our needs without placing undue pressure on green belt land.”

Berry concluded:
“While small house building firms will need to examine the details and make a decision on whether the scheme will work for their business, we urge small house builders to at least look at the details as it is a scheme with considerable potential.”

Source: FMB

Training as an apprentice is the best way to learn a trade, says the Federation of Master Builders (FMB). A survey carried out by the FMB of its members in the run up to National Apprenticeship Week 2012, which takes place between 6th and 10th February, found the apprenticeship tradition was alive and strong among small construction firms.

Providing young people with employment opportunities and making sure a business has people with the right skills were also listed as the top reasons for employing an apprentice by FMB members. However, when asked about the biggest barriers to hiring an apprentice, FMB members ranked ‘a lack of confidence in the economy and future workloads’ higher than anything else.

Brian Berry, FMB Director of External Affairs, said:
“National Apprenticeship Week is a fantastic way to promote the benefits of apprenticeships to employers and future apprentices. The apprenticeship challenge in the construction sector is about growing the supply of skilled and qualified workers in line with the industry’s needs. We are very pleased the Government has decided to make apprenticeships a spending priority, but it is employers who are at the heart of the apprenticeship system and it is extremely difficult to anticipate much growth in the number of construction apprenticeships without growth in the industry.”

Berry continued:
“The Government’s proposal for an incentive payment for small employers is welcome but the Government is risking the success of this policy by excluding small businesses with previous experience of training apprentices. These businesses are no less discouraged by the cost of hiring an apprentice, especially at the current time when most small building firms are struggling to maintain workloads. What the Government should be doing is introducing more flexibility into the ‘Small Employer Incentive’ eligibility criteria so that small businesses with a history of employing apprentices are not excluded to the detriment of the young people the Government says it wants to help.”

Berry concluded:
“The Government needs to allow a flexible approach to funding so that the apprenticeship programme really can meet the needs of employers. This means ensuring that reduced levels of funding for 19+ apprenticeships do not hamper progression. 16-18 year old apprenticeship starts should be fully funded through to the ‘advanced’ level 3, regardless of the apprentice’s age upon conversion from level 2 to level 3. If an employer is asked to contribute to the ‘off-the-job’ training costs as well as the employment and supervisory costs, this makes an advanced apprenticeship much less attractive.”

Source: FMB

Get Britain Building is intended to unlock stalled sites with planning permission to support construction activity and provide new homes.  It is intended to address difficulties in accessing development finance faced by some housebuilders and to help bring forward marginal sites by sharing risk.

The programme is open to all private sector organisations which control land and can develop at least 25 homes on the stalled site by December 2014. It is not limited to smaller companies but the HCA has tried to streamline the first stage of the application process to make it easier for all developers to access funding.

We have received a strong response to the Programme with 170 expressions of interest received by the closing date of 12pm Monday 30 January, with many including multiple schemes.  The expressions of interest will now undergo an initial assessment by the HCA – looking at value for money, deliverability and fit with local priorities – with a shortlist of schemes to be established by mid-March.

In addition, we have announced the first 18 schemes to be taken forward to the next stage of the assessment process, to unlock delivery on commissioned schemes which are of high importance to particular communities and can create wider local benefits.  Subject to due diligence and contracting, the 18 commissioned schemes could deliver up to 1,300 new homes, including on public sector sites.

Source: www.homesandcommunities.co.uk

Consumers should avoid being tempted by a cheap cash deal and protect themselves against paying more in the long term, says the FMB in response to comments by the HMRC Permanent Secretary in today’s Telegraph.

FMB Director of External Affairs Brian Berry said:
“We are pleased HMRC is becoming more vocal about the damaging effect cash in hand payments have on individual businesses and the economy at large. Businesses that avoid paying VAT have a 20% head start, but all too often this cheap deal comes without a proper written contract or any kind of paperwork meaning the enforcement of consumer rights is almost impossible if something goes wrong.”

Berry continued:
“The Government can reduce the competitive advantage of these rogue traders and help protect consumers by cutting VAT to 5% for all home repair, maintenance and improvement work. This simple, single action would help reduce the size of the ‘informal economy’ in the home improvement market, which is now estimated to be worth an astonishing £9.3 billion per year.” 

Berry concluded:
“Over 5,000 construction businesses have gone into insolvency since 2010. At a time when the economy is on the brink of tipping back into recession, the Government should be doing everything it can to support legitimate businesses, not adding to the total number of unemployed.  According to research by the analysts at Experian, last year’s rise in the standard rate of VAT to 20% resulted in nearly 4,000 job losses in the home improvement market in 2011 alone.”

Source: FMB

The Government must make construction a priority, says the Federation of Master Builders (FMB), largest trade association in the construction industry, in response to the latest GDP figures released by the ONS today, which show that construction and manufacturing have dragged the economy back into negative growth.

FMB Director of External Affairs Brian Berry said:
“Today’s GDP results are not surprising, our latest state of Trade survey for the last three months of 2011 showed that workloads in the SME construction sector have declined in each of the 16 quarters to the end of December 2011. Confidence in the building industry has collapsed with only 5% of small building companies expecting workloads to increase in 2012.”

Berry continued:
“The GDP figures release today prove that construction is essential to the health of the UK economy. However the industry needs the Government to adopt a bold approach to reducing the burdens upon it; pursuing the proposed planning reforms and a reduction in the overall burden of developer contributions, which are still making many sites unviable, are urgently needed. Proposed changes to part L of the building regulations must be delayed. The Government must do more to ensure banks return to reasonable rates of lending to the construction sector.”

Berry concluded:
“We realise that money is tight for the Government but if it wants growth in the wider economy it needs to allow construction industry get building.”

Source: FMB

* De-clutter. Too much furniture makes rooms look smaller.
* Move it. Move furniture away from the centre of the rooms – the more floor you can see the more spacious the room will seem.
* Hide it! Make the most of every nook and cranny with bespoke or integrated storage solutions and maximise free living space.
* Co-ordinate. Use one colour scheme (preferably neutral) to give an illusion of space.
* Lighten-up. Replace a picture or two with mirrors, it will really open up the space.
* Double-up.  Multi-functional furniture is perfect for smaller rooms; combine seating with storage for example.
* Toy box discipline. Have a toy box or cupboard that you can put toys in when they aren’t being played with, so they are off the floor and out of the way.

This should get you through Christmas and in the New Year you can make a few plans for remodelling or even extending your home to REALLY make more space!

Source: FMB

Last Story: Case Study: Double Storey Side Extension in Esher, Surrey

Area: Esher, Surrey

Testimonial: I would highly recommended Andrew and his very professional team. They worked incredibly hard, were polite and tied up at the end of each day. The 3 words I would use to summarise Andrews approach is; Professional, Flexible and Fair. Over the 20 week build Andrew always kept us informed, included us in the decision making and highlighted areas for reference – we had no surprises. Post completion snagging has also been undertaken promptly and without hesitation. Thanks to Andrew and his team, we have achieved our vision of a lovely family home. I would happily recommend Andrew and his team.

TO VIEW THE ENTIRE JOB PLEASE CHECK THE CASE STUDY BY CLICKING HERE

BEFORE (front)

AFTER (front)

TO VIEW THE ENTIRE JOB PLEASE CHECK THE CASE STUDY BY CLICKING HERE

BEFORE (back)

AFTER (back) TO VIEW THE ENTIRE JOB PLEASE CHECK THE CASE STUDY BY CLICKING HERE

On average each person in the UK currently uses about 150 litres of water every day and much of this is wasted.

Around 30% of the average household heating bill is spent on heating water, costing around £200 per year (even higher if you also use an electric immersion heater.)

Here are some handy hints from the Energy Saving Trust for saving water inside the home:

• Change your head: If a four person family replaces their inefficient shower head with a high flow rate to a water efficient one they could save around £50 off their gas bills and around £75 off their water bills if they have a water meter each year. That’s a total saving of £125.

• Snub the tub: If everybody in a four person family replaces one bath a week with a 5 minute shower they can save up to £10 a year on energy bills and up to £25 on water bills if they had a water meter.

• Turn it off: A running tap wastes over 6 litres of water a minute so turn off the tap whilst brushing your teeth, shaving or washing your face and use cold water where you don’t need hot.

• Don’t be a drip: A dripping tap can waste over 5,500 litres of water a year so make sure your taps are properly turned off and change washers promptly when taps start dripping.

Find out more by clicking HERE to go through to the Energy Saving Trust website

Source: FMB