Equity scheme breathes life into housing market

The first buyer has reserved a Barratt home under a government programme to part-fund people struggling to get on the housing ladder.

More than 20,000 people have also registered their interest in buying a new home from Barratt under the scheme that gives homebuyers the chance to move in for only 70 per cent of the purchase price.

The £400m programme provides an equity loan of up to 30 per cent to first time buyers - part funded by the Homes and Communities Agency and the developer - and is on target to deliver up to 18,000 HomeBuy Direct properties across the country via more than 100 house builders.

Barratt has more than 3,000 homes across the country eligible for HomeBuy Direct and has been taking pre-registrations for for two months. In the last week the scheme has gone live, enabling people to make reservations.

Mark Clare, chief executive of Barratt Developments said: "The fact that 20,000 people have registered their interest in buying a Barratt home under HomeBuy Direct shows that there are signs of life in the housing market.

"Customers will be buying at today’s prices, not the high 2007 prices. And the loan for 30 per cent of the property’s value makes it even easier for them finally to own the roof over their heads."

Housing minister Margaret Beckett said: "We have seen an enormous amount of interest in this scheme from potential buyers and the figures really do speak for themselves. The huge number of registrations Barratt Homes has taken shows there is an increasing appetite for these types of shared equity schemes."

Sir Bob Kerslake, chief executive of the HCA, said: "We are extremely pleased with the response and progress on HomeBuy Direct which is very encouraging for both buyers and the house building industry.  This has been an excellent example of partnership working."

The HCA also confirmed that Barclays, through its Woolwich mortgage arm, has become the latest lender to support HomeBuy Direct, joining Halifax and the Royal Bank of Scotland who have also signed up to the scheme.