This follows the news that Chap Homes, who are developing Donside in partnership with Tenants First Housing Co-operative, are among the first wave of builders approved for the MI New Home scheme which has just been launched today (Wednesday, September 12).
Supported by the Scottish Government, MI New Home has been developed by the home building industry. Its aim is to tackle the large deposit requirements that have prevented many people buying their first home, or moving up the housing ladder.
Only available to new home buyers, MI New Home enables participating lenders to offer up to 95% mortgages on properties up to £250,000 sold by participating builders.
The current requirement for substantial deposits have made it impossible for people to purchase. Based on the Registers of Scotland 2011/12 average house price of £156,419, buyers have had to find almost £40,000 for a 25% deposit. With a 5% deposit that figure is cut to £7,800.
Karen Davidson, Sales Supervisor at Chap Homes, expects the MI New Home scheme to stimulate the market:
“Of all the factors that have been holding people back from buying their first home, or moving up the property ladder, the requirement for large deposits has been the most difficult to overcome.
“We’re delighted to have been included in the first wave of builders who can offer the MI New Home scheme and I expect it to make a huge difference.
“There is considerable pent up demand from first time buyers and those want to move. The MI New Home scheme should make a huge difference, making it possible for many of them to make their move.”
Donside, on the site of the former Donside Mill, on the tree-lined banks of the River Don, is a mixed tenure development with a range of housing types from flats to town houses. Within easy reach of Aberdeen city centre, it is also close to Old Aberdeen and the University of Aberdeen,
Chap Homes and Tenants First recently reported the first phase of 42 homes at Donside were occupied with the first homes in the second phase being released. There are 283 homes in the overall Donside development.