According to the Home Builders Federation (HBF), the new residential property market in England and Wales is showing the first signs of an upturn since 2006.

Some 60% reported that they have seen an increase in property sales compared with this time last year. The HBF said in the report that the industry has been through ‘the economic equivalent of a tsunami’, with an estimated 250,000 construction jobs lost in a year.

The survey also highlights that the biggest hurdle to a recovery in the residential property sector is now the availability of mortgages. Many believe that banks have failed to meet legally binding obligations to lend more money to property buyers. Many also believe that the much talked about Government scheme to help first-time buyers get on the property ladder has failed to live up to expectations. So far only 215 people have taken advantage of the Home Buy Direct scheme which was announced last September aimed at helping 18,000 people.

The scheme aims to help people buy new-build properties by providing them with up to 30% of the purchase price through a loan secured against the property, with 15% coming from the Government and 15% from the developer. The loan, for first time buyers with incomes less than £60,000pa, is interest free for the first five years, although borrowers must pay an annual fee of 1.75%, after which interest is charged at inflation plus 1%.

The HBF said its latest information indicates that around 2,000 buyers are currently going through the scheme so there is obviously interest.