The government sponsored scheme to jump start the UK housing market is set to begin at the end of the month.  The UK government’s NewBuy program will allow Brits the opportunity to purchase a home with only a 5% deposit, instead of the typical deposit of 20%.  There are 100,000 lucky future homeowners who will get the opportunity, according to housing minister, Grant Shapps.   

Steve Turner, of the Home Builders Federation which teamed with the Council of Mortgage Lenders in developing the scheme, commented on the latest news surrounding the plan, said: "All the major lenders have signed up.  The biggest constraint on sales and construction is the fact that people can't get mortgages. Very few people can afford a 20 or 25 per cent deposit but this will reduce deposits to a realistic, achievable level."

Properties designated for purchase within the scheme are properties up to 500,000 pounds in value.  The scheme can be taken advantage of by first time buyers as well as existing homeowners.

Nigel Stockton, at Countrywide, commented on the range of participating lenders and builders who will be taking part in the action once it begins on March 12, saying: "The housebuilders are behind this and I anticipate to see Nationwide, Lloyds and Santander move in from the likely start date of 12 March.”

Sue Anderson, of the CML, commented on the low amount of risk associated with the scheme for lenders and builders, saying: "Lenders can lend with more comfort and without incurring risk and capital issues. Lenders typically have lower loan to values (LTVs) on new-builds than existing buildings so what this does is level the playing field a bit.”