As part of the budget deal negotiated by the Welsh Liberal Democrats in the 2011 budget the Welsh Labour Government agreed to a scheme to help first time buyers enter the property market. NewBuy would have enabled buyers to have high loan-to-value mortgages and supported the building of 3,000 homes.
Carl Sargeant had previously said: “We are all aware of the difficulties that people are having in either buying their first home or moving up the housing ladder. NewBuy Cymru will provide a helping hand in the shape of a mortgage guarantee to people that have been saving hard to put down a deposit for a new home.
“By helping to kick-start the housing sector it’s hoped that NewBuy Cymru will help tackle poverty and provide a welcome short in the arm to our economy.
“I would urge people to sign up to this great scheme and look forward to officially launching it in June.”
There have been concerns over the time frame of the scheme for some time with more than a year passing with various different launch dates proposed by the Government, however Minister Carl Sargeant had agreed that the scheme would be ready to launch on June 3rd this year.
The Welsh Government is claiming that due to their lack of knowledge over similar schemes – to begin in 2014 – the plans to support first time buyers in a difficult economy have had to be scrapped. The scheme by the UK government will provide a loan of up to 20% of the equity, repayable once a home is sold.
Admittedly the housing sector in Wales has withdrawn support in favour of the scheme that will be launched in England, simply because the Welsh Government has been dragging its heels over a policy which would give a boost to people across Wales and to the Welsh economy.
Carl Sargeant told AMs: “The NewBuy Cymru scheme was one of the first things I brought to the chamber in terms of the announcement. What we didn’t quite seek was, the day after, the Treasury announcement in terms of their scheme, Help To Buy.
The Government has had ample time to launch the scheme, yet first time buyers will now have to wait more than 12 months for the UK Government to yet again pick up Labour’s pieces.
This news comes just two days after the Welsh Government announced it had scrapped the failing £36m back-to-work Genesis Cymru Wales 2 scheme after it failed to meet government targets.