Protect fragile first time buyer market

Keepmoat Homes today warned the government not to undermine the fragile first time buyer market amid reports that the number of affordable homes built in the next ten years could be halved.

The National Housing Federation (NHF) said pre-Budget report figures suggested the housing budget could be cut by 17.98% - resulting in less homes being built for the first time buyer market.

After a tough couple of years for developers, confidence is slowly returning to the housing market. The number of completions has improved and more developments are planned, providing a boost to the economy and the job market.

However, with the successful HomeBuy Direct scheme set to end in March, the news that the housing budget is expected to be cut represents a double blow for the new housing market and first time buyers.

According to the NHF figures, 4.5million people are currently on target lists for affordable housing. If these predicted cuts are made the figure could rise to over 5 million.

Peter Hindley, Managing Director at Keepmoat Homes said: "This news is a blow to us and a blow to all prospective first time buyers. We will however continue with our plans to deliver more high quality affordable homes. We are slowly emerging from what has been a difficult time for developers and we ask the government not to jeopardise the progress that has been made."

Keepmoat Homes currently has around 30 developments located across the Midlands and the North of England, many of which offer buyers HomeBuy Direct or Keepmoat Homes' own shared equity scheme.

Despite the news it has plans for further developments, including large developments in Hull and Leeds that will provide hundreds of new and affordable homes for first time buyers and those with growing families.