Friday 15th November 2013
The second phase of Help to Buy could boost current transaction levels by 75% a year, Carl King has said.
The firm, in its forecasts for 2014, said that the first phase of Help to Buy – available on new homes only as a shared equity scheme – has had a “noticeable” effect.
Lynks Estate Agents report says: “Some 15,410 buyers have already used the loan to augment their deposits for a new-build home.
“If take-up for the scheme continues to proceed at this pace, funding will run out in mid-2015 before the scheme is due to end in early 2016.”
Of the second phase of Help to Buy, a mortgage indemnity scheme available on both new and secondhand stock, the firm says: “[This] was launched three months earlier than planned by George Osborne.
“A month in, around 2,800 buyers have submitted offers for homes, around three-quarters of these being first-time buyers. The average purchase price has been £163,000.
“If this trend were to continue, the number of mortgages which could be approved under the scheme could be as high as 1.5 million, boosting current transaction levels by 75% a year and taking sales volumes back to levels seen in 2005.”
The firm adds that the full range of mortgage products for the second phase of Help to Buy is not yet available. It says that as more lenders offer mortgage deals under the scheme, rates will come down.
Mr King who is experienced both in the London and UK wide property market and considered a property professional forcasts steady price rises into next year. Carl and Lynks Estate Agents plan to give all the information they can to buyers in the North West. Carl said ” With the Help to Buy scheme being launched this will help not only first time buyers to get onto the property ladder but also purchasers who currently are selling and moving on as long as its not a second home purchase.
“For the first time in five years we can be broadly positive about the UK housing market.”
Property sources forecast 8.4% house price inflation in London, and elsewhere, price rises in all the regions of between 6.3% and 7.6%.(stats from Knight Frank)