The Housing Minister has announced today that homeowners looking to take their next step on the property ladder will now be able to trade their old property in for a new-built home.

Launching ‘NewBuy part exchange’, Mark Prisk claimed this new measure would help free up the housing market, not just for these ‘second-steppers’, but also for aspiring first-time buyers, as more properties are freed up to buy.

From today, builders offering the NewBuy scheme will now offer to buy a customer’s existing property in advance of selling them a newly built home, alongside their 5% deposit.

NewBuy part-exchange will be available for the first six months of 2013, with the possibility of this being extended subject to demand.

Prisk said: “The NewBuy scheme is unique in the industry in that it not only supports aspiring homeowners, but also those looking to move up the property ladder.

“The part-exchange offer to second-steppers will help them make that move, getting the housing market moving and ensuring those looking to move to a bigger home more suited to their needs can do so.”

Stewart Baseley, executive chairman of the Home Builders Federation, added: “We know that there is a huge pent-up demand for home ownership after years when large deposit requirements have prevented many people from buying their first home or trading up to a larger home.

“NewBuy means people can buy a new home with a 5% deposit and is now a real option for those who thought they couldn’t get on to the property ladder.

“Allowing people to part-exchange their existing homes and buy a new one using NewBuy will also be a huge boost for those families stuck in their existing homes, unable to sell and without the required deposit to move.”