Let’s face it - as the cost of home ownership continues to rise, it’s about time that first-time buyers had some good news. Right on cue, in an announcement released on Wednesday (29th of June), Halifax has announced that they will be entering the Shared Ownership new build market at 95%!

The bank confirmed that it will now accept a 5% deposit on both new build flats and houses in shared ownership schemes run by housing associations. “Bringing the maximum loan-to-value (LTV) in line with existing properties also has the advantage of making greener homes more attractive and attainable for first time buyers”, the lender said.

This indicates confidence in the new build market as the Halifax is supporting new build homes and the drive to net zero by making warmer, greener homes more accessible and attainable for potentially thousands of new buyers.

You may be wondering, what does this actually mean for customers? In news that will come as a huge relief for first-time buyers, the bank has effectively halved the minimum deposit that you need to save for a new build home, which now goes from 10% to 5%. 

The Halifax confirmed that it will now accept a 5% deposit on both new build flats and houses in shared ownership schemes run by housing associations.

This may not sound like a huge difference on paper, but in reality, this will make the time it takes you to save for a home a lot speedier. Given that the average house price in the UK is currently £289,099, this means you can now put a deposit down with £14,500.

When it comes to saving for a home, the time and effort needed to save a deposit is often the biggest hurdle facing first-time buyers. Thanks to Halifax, you’ll now be able to land your dream home in half the time!

The good news continues, as most new builds are built according to principles of sustainability and energy efficiency they have higher efficiency standards with average EPC ratings of B or better, compared to D or worse for homes built before 1982.

This improved energy efficiency could end up saving you a considerable amount of money, with most owners of new build houses saving over £500 per year on household bills.  

Looking to get on the housing ladder? Halifax is also making it possible to pay a 5% deposit towards a Shared Ownership Home, which helps make home ownership even more affordable! Take a look at Peabody’s Shared Ownership apartments to find out more.