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Government to extend 'NewBuy' scheme

Chancellor George Osborne will announce an extension of the Government's support programme for mortgages in Wednesday's Budget as part of a bid to boost housebuilding, the Financial Times has reported.18 Mar 2013

According to the report the Government will allocate more resources to the NewBuy scheme under which the Government and private sector provide guarantees to banks to enable borrowers to secure up to 95% mortgages for new build homes.

The Department for Communities and Local Government (DCLG) has been working on a package to extend the programme beyond new properties to the existing homes market, to enable homeowners with limited or negative equity to make use of the support.

The DCLG launched the scheme in March last year as part of its housing strategy. It said it expected the scheme to support an estimated 50,000 jobs in construction and related industries and to help kick start the stalled housing market.

Other housing measures reported to be expected to be announced as part of the budget include shared equity schemes and guarantees for social housing.