1
Aug
FTB schemes 'may not suit everyone'
Schemes for first-time buyers have been becoming more popular in
the last year, but one expert has warned that they may not be for
everyone.
Despite schemes such as FirstBuy and NewBuy, under which homebuyers
need only raise around a five per cent deposit, being quite
popular, Mark Hayward, chairman of the National Federation of
Property Professionals, said it is rather restrictive.
"Unfortunately it is restricted to new homes only and it is
restricted to those developers that have met the criteria that
lenders put down. It doesn't suit everybody."
He also said that the other problem is that these schemes do not
help the property chain in its natural flow.
Normally, when a first timer comes into the market, the person in
their house before would move up to the next bracket, but because
they are buying new homes, they are absorbed rather than fed into
the property market.