First-time buyers’ scheme only “modest” boost, warns building boss
Bellway's Jason Honeyman told The Times that Your First Home, announced by the Chancellor, will "not supercharge" housebuilding.
The boss of housebuilder Bellway has warned the Government’s new incentive for first-time buyers will only provide a “modest” boost.
Jason Honeyman, the company’s Chief Executive, says Your First Home was needed two years ago, and is “not going to supercharge housebuilding”.
Chancellor John Healey unveiled the scheme, which is only available for new-builds, in his Budget last month.
It will help around 70,000 households in England to take their first step onto the housing ladder, and support the delivery of an estimated 20,000 new homes, according to the Treasury.
Your First Home will provide 20% equity loans, with a minimum deposit set at 2.5%, and maximum of 15%. The loans will be interest-free for the first five years.
It’s not going to supercharge housebuilding.”
Honeyman of Bellway (pictured) told The Times: “Your First Home is great for young people and it’s the right thing to do, but it should probably have been done two years ago.
“It has the potential [to increase housebuilding volumes], but I think it’ll be modest. That’s probably why the stock market is a little underwhelmed by it. It’s not going to supercharge housebuilding.”
Before the Chancellor made his announcement, Honeyman warned the build-up to the launch of the Your First Home scheme next April could slow the housing market.
He also points to issues in London, warning that viability issues will continue to dog housebuilding.
“I don’t see the London market changing in the short term,” he says.
