The government's new mortgage indemnity scheme is good news for Bristol's economy, say property consultants Jones Lang LaSalle. The NewBuy scheme, which will help banks lend up to 95% of the value of new homes, will enable more first-time buyers to get on to the property ladder thus encouraging lenders to reinvest in development and providing a vital kick-start for Bristol's new-building residential market.
Vicky Dudbridge, associate director in Jones Lang LaSalle's residential team in Bristol, said: "It's a chicken and egg situation – developers won't build without the money from lenders and the money isn't there for something that's not built.
"The demand for new-built residential in Bristol has never gone away despite the sluggish residential market nationally – yet currently the only ready-to-move stock in central Bristol is at Finzels Reach. There is some development in the pipeline but it will be early next year before anything completes. Even if a new project begins later in the year it will be 12 months before anything completes."
NewBuy is backed by the Home Builder's Federation (HBF) and the Council of Mortgage Lenders and seven construction firms. The scheme is available in England only on flats and houses worth up to £500,000.
