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No one takes up Help to buy in Oxford

New build homes have many benefits for buyers.

No messy renovation work needs to be done, you can move straight in without a chain of buyers to worry about and you get to live in a brand new property that no one else has lived in before.

With the majority of new homes you'll also get builders warranty insurance, a 10-year policy provided to developers by companies such as CRL.

The 10 year policy means you have complete peace of mind that should you new build have any structural issues they can be repaired or rebuilt.

Add on top of all these benefits, the useful government Help to Buy scheme, and you would think new builds would become an attractive option. However it appears as though no one has taken up a scheme to help buyers purchase a new build home in Oxford since it was first launched.

Help to Buy loans were first introduced by the government in 2013 and have proven to be popular with more than 62,500 properties worth £13.6bn bought nationally under the scheme.

Help to Buy works by giving the home purchaser an interest-free loan financed by the government in order to boost their deposits and help homes more affordable.

 

Structural Defects Insurance

Campaigners believe the reason for the zero take up on the deal in the city is due to a lack of enough new homes in the area and that house prices are too expensive in Oxford for the scheme to work.

The Department for Communities and Local Government admitted that more needed to be done especially in areas where there are low levels of new homes being built.

A spokesman said: “If levels of new-build are low, it is to be expected that take-up of the scheme will also be low." It was also mentioned that another aspect of the Help to Buy scheme is the Mortgage Guarantee scheme which is available on new homes and existing properties. There have been been 32 completions using the Mortgage Guarantee scheme in Oxford.

Duncan Stott, from PricedOut.org, believes that the scheme isn't working because it can only encourage buyers to take on large mortgages, which will push up house prices to even higher levels, making them unaffordable for many.

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