Scheme will now vary the deals it offers those buying a home through Help to Buy in Wales depending on how eco-friendly the property is.
Estate agents and developers selling the most energy efficient new-build homes in Wales to first time buyers will get a boost in June when ground-breaking new rules favour greener homes under the country’s Help to Buy scheme.
The Welsh government has revealed that it is to offer home buyers using Help to Buy better finance options depending on the energy efficiency of the property they buy, the first time this has been attempted in the UK.
The logic is that the less a property costs to run, the more young people trying to get on the property ladder – who make up 75% of all applicants in Wales – should be able to borrow via the equity-loan based scheme.
“We have worked closely with the Building Research Establishment on the project which modelled this work, and we are the first government, indeed the first organisation in the UK to put this into practice,” says Welsh Housing and Regeneration Minister Rebecca Evans (pictured, left).
“Whilst there is no obligation on mortgage lenders to change existing practices or their own affordability assessments, we hope to see them follow our lead and make energy efficiency part of the mortgage consideration for all home-buyers in Wales.”
The new scheme will begin in June and will affect the 1,700 properties that are bought via Help to Buy in Wales every year and worth some £1.2 billion.
“We know that energy spending can be a major household outgoing, which is why we want to make energy efficiency part of the consideration when people look to buy a home in Wales,” says Rebecca.