Buyers keen to register for new homes in Bristol

Prospective homebuyers have been quick to sign up for a new scheme backed by David Wilson Homes and the Government which enables them to move into a new home in Bristol for just 70 per cent of the price.

Pre-registration for the HomeBuy Direct scheme was launched just four weeks ago. Homebuyers taking advantage of it will receive a 30 per cent equity loan funded jointly by David Wilson Homes and the Government. The buyer finances the remaining 70 per cent of the purchase price either through a mortgage, a deposit or a combination of the two.

The company is backing the initiative with a total of 3,000 homes nationwide. The homes being allocated to the scheme in Bristol include Strawberry Fields at Downend, The Brambles and Jubilee Mews in Kingswood and The Courtyard at Beaufort Vale, Siston.

“We have had a tremendous response in the four weeks since we launched pre-registration for HomeBuy Direct in which shows that there is still enormous demand for new homes in this area,” said sales director Bernice McKenna.

“People who have been priced out of the housing market for years can see this is an outstanding opportunity to buy at new, lower 2009 prices - not high 2007 prices. The 30 per cent equity loan from ourselves and the Government means that in many cases they don’t even need to have a deposit.

“The scheme is open to First Time Buyers, key workers and others who are currently renting. People who have previously owned properties but are now unable to do so – perhaps because they have been in relationships which came to an end – can also apply.”

Under HomeBuy Direct, buyers will be protected against possible falls in property values up to 30 per cent as the David Wilson Homes/Government equity share will absorb price risk. In addition, there is no interest to pay on the joint David Wilson Homes/Government equity stake for the first five years, although a fee will be charged from year six onwards.

Buyers can redeem the loan in instalments, purchasing up to 100 per cent of the equity after their initial purchase by buying additional equity at the market rate. Alternatively, if they sell their home, the equity loan is repaid by way of a share of the sale proceeds.

Households eligible to take advantage of the offer will be earning less than £60,000 and would not normally be able to afford to buy a suitable property on the open market.

For information about David Wilson Homes and the Homebuy Scheme, log on to Dwh.co.uk.