1 Aug

FTB schemes 'may not suit everyone'

FTB schemes 'may not suit everyone'

Schemes for first-time buyers have been becoming more popular in the last year, but one expert has warned that they may not be for everyone.

Despite schemes such as FirstBuy and NewBuy, under which homebuyers need only raise around a five per cent deposit, being quite popular, Mark Hayward, chairman of the National Federation of Property Professionals, said it is rather restrictive.

"Unfortunately it is restricted to new homes only and it is restricted to those developers that have met the criteria that lenders put down. It doesn't suit everybody."

He also said that the other problem is that these schemes do not help the property chain in its natural flow.

Normally, when a first timer comes into the market, the person in their house before would move up to the next bracket, but because they are buying new homes, they are absorbed rather than fed into the property market.ADNFCR-1222-ID-801420399-ADNFCR

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