David Cameron pic: Department for International Development

Prime Minister David Cameron visited Lewisham today to launch a new government scheme to encourage house buyers.

The Prime Minister announced the launch of NewBuy, a mortgage indemnity programme, at the Renaissance housing development in Loampit Vale. The scheme aims to help up to 100,000 people, who will receive government support to buy homes worth up to £500,000.

Under the scheme buyers will be able to borrow up to 95 per cent of the value of a newly built home, meaning they will pay a deposit of as little as 5 per cent. NewBuy will be backed by money from developers and the taxpayer.

Cameron said it will help “unblock” the housing market by offering help to buyers who cannot afford the high deposits often required, particularly in London.

During his visit he spoke to a local couple about the difficulties they have faced in buying their first home.

“You’ve got this problem of two young people working very hard, putting money away, but because they can’t get a deposit of £40,000, £50,000 pounds together, they’ve got no chance of buying a flat or a home,” he said. “I think that’s wrong.”

The Prime Minister has also pledged to “reboot” the Right to Buy scheme, which was originally launched by Margaret Thatcher, by offering social housing tenants who wish to buy their home discounts of up to £75,000. Cameron hopes the move will encourage “strong families and stable communities.”

The Renaissance development is part of the regeneration of Lewisham town centre. It will provide 788 new homes that will be available to purchase under the NewBuy scheme.