PURCHASERS of new build homes in Chudleigh will see their deposits cut by at least £24,000 by using the government backed NewBuy scheme, according to local housebuilder, David Wilson Homes (0844 811 4441).
Homebuyers buying a property at £239,950 previously would have paid a 15 per cent deposit of £35,990, but with the five per cent deposit available with the NewBuy scheme, this is slashed to just £11,900.
The reduction on the deposit could reach as much as £40,500 on David Wilson Homes' top of the range family homes in Chudleigh, which are priced at £404,950.
David Wilson Homes has reported that the scheme is already proving popular with customers in the region and 10 per cent of the company's buyers are already using the scheme because of the lower deposit required.
Sales director Louise Ware said: "We see this as a game changer for the housing market. Credit worthy families who have put their plans to buy a new home on hold for the last few years can once again think of their future.
"It's fantastic news for local homebuyers and the economy alike.
"Many have been frustrated with the huge deposits of 15 per cent or more needed on the open market and the new scheme is enabling homebuyers to finally get moving.
"Thanks to this scheme the deposit needed for a new home has been radically reduced – customers can borrow more at a lower interest rate than was previously the case.
Louise added: "We are beginning to see significantly more sales using this scheme and homebuyers' confidence is growing.
"But it's important to understand that the scheme only applies to new build properties in the area and is not available for second hand homes."
David Wilson Homes, which operates in the South West has already seen sales during the January to June 2012 period increase by 33 per cent compared with the same period last year.
The division legally completed 506 homes worth £94.1 million during this time.
NewBuy, the 95 per cent mortgage backed by the government, means all purchasers of new build homes, not just first time buyers, can take advantage of the reduced five per cent deposit.
NewBuy is available in England on all David Wilson Homes up to and including a sale price of £500,000.
Availability in Chudleigh includes two, three and four bedroom homes.