Estate agent Brian Holt welcomes 95% mortgage plan

Proposals unveiled this week will boost employment and thus the economy and get the housing market moving generally, says Brian, whose company has offices in Leamington, Kenilworth, Coventry city centre and Earsldon.

“Once new jobs start being created, confidence in the economy will pick up and people will feel less nervous about committing to moving house.

“Those who are currently unable to get a mortgage because of the low loan to value ratio will finally be able to buy a home – as long as it is brand new.

“Those who don’t need such a high loan to value will have a choice of new or second hand homes and this mix of movement will see properties circulating again.”

But Brian warns that caution needs to be taken to ensure the market doesn’t become skewed with a two tier pricing system for new and second hand properties.

“Developers will have a captive audience. As those requiring 95 per cent mortgages will only be able to buy new builds they will be able to increase their prices compared with the equivalent for a second hand home.

“So it’s important that pricing is closely monitored to ensure this doesn’t happen – or that high loan to value mortgages are extended to cover non brand new homes too.”

Building more homes is one of the government’s economic priorities, with the number of new properties being built at its lowest level since the Second World War. Just 121,200 new homes were made available in the UK in 2010-11, half of what ministers say are needed.

Pictured: Brian Holt says the government’s planned 95 per cent mortgage scheme should restimulate the housing market.