MORE signs of a recovery in Devon's housing market have been reported by two major housebuilders.
Devonshire Homes has confirmed that enquiries for their new build homes across the region have increased sharply since the Government's Help to Buy programme was announced in last month's Budget.
And Taylor Wimpey, whose current developments include new homes at Cranbrook, has said the new measures are good news for local buyers who could not otherwise afford to buy because of the large deposits required by mortgage lenders.
The early response to the scheme suggests that 2013 could be the time to act for those keen to get on the property ladder or to take the next step.
Help To Buy aims to help more than 75,000 buyers across the country purchase a new home. An equity loan scheme is available on new build properties up to £600,000. There is no salary cap for purchasers and it is available to first-time buyers and existing homeowners.
Eligible purchasers will receive a Government loan of 20 per cent of the property's value, which means they only need to put down a five per cent deposit and obtain a 75 per cent loan-to-value mortgage.
The existing Government-backed NewBuy scheme is still available on homes up to £500,000. With NewBuy, creditworthy first-time buyers only need to save a five per cent deposit to get on the property ladder, while existing homeowners can also benefit from the increase in availability of 95 per cent loan-to-value mortgages.
Jane Pearce, sales manager at Devonshire Homes, said: "We have experienced a substantial rise in activity from potential home buyers who are enquiring about the options available to them since the Chancellor's announcement of mortgage assistance.
"The response is encouraging. It demonstrates these measures could bring a new vibrancy to the housing market by assisting those people not just looking to get on the property ladder, but to move up it."
The scheme will run for three years. Paul Land, managing director at Devonshire Homes, said: "These latest programmes offer solutions for many categories of households.
"We welcome any viable scheme that helps people secure a suitable home who might otherwise be unable to afford a property at the full market value."
Janine Copleston, regional sales and marketing director for Taylor Wimpey, said: "We've seen some very positive signs that recovery in the housing market in Devon is under way and the measures announced by the Chancellor will go a long way towards boosting confidence and encouraging further improvement.
"Initiatives such as these really do make all the difference.
"We've had fantastic success with previous Government schemes; in fact in 2012 Taylor Wimpey helped 1,750 people across the UK buy a new home using the initiatives. The new Help to Buy scheme is sure to prove just as popular and will make a huge difference."
