The flagship scheme had been due to launch on June 3 but a Welsh minister said the scheme had to be pulled as the UK government had ‘pulled the carpet away’.
When the launch of NewBuy Cymru was announced on March 21 housing minister Carl Sargeant said that he anticipated that the scheme would support the delivery of up to 3,000 additional homes.
However Sargeant has informed the Welsh Assembly’s Communities, Equality and Local Government Committee that he has decided to scrap the scheme after the housing industry withdrew its support following the launch of the Help to Buy scheme.
Sargeant said: “The NewBuy Cymru scheme was one of the first things I brought to the Chamber in terms of the announcement.
“What we didn't quite seek was, the day after, the Treasury announcement in terms of their scheme, Help to Buy.”
With Help to Buy not due to start until 2014 Sargeant said he would now look for ways in which the Welsh government could support homebuyers in the interim.
