News
UK flagship Help to Buy reaches 131 new home owners a day
The UK government’s flagship Help to Buy schemes have created 131 new home owners every day since April 2013, according to the latest figures to be released. Housing Minister Brandon Lewis said that the data shows Help to Buy is an important part of the government’s efforts to ensure anyone that works hard and aspires to own their own home has the opportunity to do so. Since the launch of the schemes, over 100,000 people have used the Help to Buy equity loan, mortgage guarantee and NewBuy schemes at a fraction of the deposit they would normally require. The data also shows that four out of the five of these were first time buyers and 94% of the sales were outside of London, alleviating concerns expressed at the launch of the schemes that they would not reach out to the most needy. Launched in 2013, the Help to Buy: equity loan and Help to Buy: mortgage guarantee schemes were set up to support people who could pay a mortgage, but struggle to save the deposits required by lenders following the financial crisis. The Help to Buy: NewBuy scheme offers 95% mortgages for those buying new build homes and the number of new home owners has reached 101,972. Overall since 2010, over 225,000 households have been helped to buy and reserve a new home through government-backed schemes. ‘The figures clearly show the continuing success of the Help to Buy scheme in supporting many credit worthy, hardworking people who want to buy their own home. Our long term economic plan has turned this country around from the one we inherited, now numbers of first time buyers are at their highest since 2007, house building continues to climb and over 225,000 households have been helped to buy or reserve property since 2010 through government backed schemes,’ said Lewis. According to Stewart Baseley, executive chairman of the Home Builders Federation, Help to Buy continues to drive demand for new homes, and its extension to 2020 is a huge boost. ‘That demand is being met by the house building industry which is increasing output at the highest rate for decades,’ he said. ‘With this support for buyers in place, house builders are planning greater investment in land, labour and supply chains to maintain and sustain this increased level of activity. Delivering more, high quality houses will provide the next generation with decent homes, create jobs and boost local economies across the country,’ he added. The data also shows that the average price of homes under the scheme is £213,954, well below the £271,000 UK average. The scheme has also brought down the average deposit needed. Some of the main towns and cities benefiting from the Help to Buy schemes include Leeds with 1,477 sales, Birmingham with 1,301 sales, Wiltshire with 1,242 sales, County Durham with 1,169 sales and Bedfordshire with 1,128 sales. The government has already announced the extension of the Help to Buy: Equity Loan scheme to 2020, to help… Continue reading
UK south coast towns becoming new property hotspots for young professionals
The East Sussex coastline along the southern edge of the UK holds the biggest allure for aspiring young professionals to buy property, new research has found. The seaside town of Hove is the leading property hotspot for many 25 to 44 year olds to buy homes while neighbouring Brighton is the fifth most popular in the country for young professionals. The research from Lloyds Bank points out that young professionals, graduates and/or those with professional qualifications, are in well paid occupations and like to take full advantage of living in or close to a city, either for work or leisure purposes. However, the bright lights of London still attract the young and 16 of the top 20 areas that attract the most young urbanite professionals are located in the city. Nine of these areas are in South West London and include Wimbledon, Wandsworth, Battersea, Streatham and Fulham. Other areas in the capital making the top twenty include West Kensington, Chiswick, Ealing and Islington. ‘The most popular areas for young professionals tend to be dominated by trendy locations in London. Whilst this is still the case, this year our report reveals the ascendency of Brighton and Hove as two of the leading property hotspots for this group of buyers,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘Unlike many of the other areas in the survey, Brighton and Hove have the attraction of being by the sea with some outstanding beach front properties and, with average property prices here 38% or £199,000 lower than London yet still being within commuting distance, it is easy to see the desirability of living there,’ he added. The research also shows that away from London and the South East young professionals are flocking to South Manchester with Didsbury the only location in the northern half of the country in the top 20 hotspots list. Other regional areas becoming more popular for young professionals include Jesmond in Newcastle, Ilkley in Bradford, Clifton in Bristol and Harborne in Birmingham. The research points out that properties in areas popular with young professionals typically come with a hefty price tag, but there are instances where average property values are higher in surrounding areas. In Wimbledon the average property value is £624,110 and in Wandsworth homes trade at an average price of £672,178. As a result, young professionals would need to pay a premium of 19% and 28% respectively to live in these desirable areas, compared with London as a whole at £523,412. The two most expensive areas in the top 20 popular with young professionals are Paddington and Hampstead with an average price of £1,319,237 and £1,310,868 respectively, a premium of 150% compared with London as a whole. In Didsbury, young professionals pay an average premium of 59% compared with Manchester as a whole, some £239,734 against £150,751. The average house price in Ilkley is £267,799, a 136% premium compared with the whole of Bradford. In Harbourne, there is a 54% premium compared with Birmingham…. Continue reading
A strong pound is encouraging British investors to buy abroad, it is claimed
A strong currency in the UK is encouraging property investors to buy real estate abroad with some 46% keen to take advantage of the current state of the Pound, new research suggests. The survey has found that 23% of respondents are considering buying property abroad in the next 12 to 18 months due to the stronger economic climate for business and residential lettings in foreign countries. The study, commissioned in the aftermath of the Conservatives securing a majority in the recent general election, shows how a combination of financial factors are persuading property investors that now is the time to seek opportunities abroad for higher returns. Almost a quarter (23%) of respondents are considering buying property abroad in the next 12-18 months due to the stronger economic climate for business and residential lettings in foreign countries. The poll commissioned by FXcompared Intelligence, the research division of money transfer comparison site FXcompared, also found that Conservatives winning the general election is also a significant factor with 20% stipulating this as a prime reason for buying abroad. Other key influences include easier access to mortgage funding, cited by 22%, while some 16% said changes to UK Stamp Duty and property tax, 14% access to pension funds and 12% better mortgage deals abroad. The poll also asked what type of properties investors were interested in and found that 19 are looking to invest in multiple properties at one location, while the same number think coastal locations offer the best return on investment. Also 25% are now focusing on bigger properties as they seek to capitalise on the current opportunities in the market especially as a stronger pound has made it more affordable. Better weather is still the main lifestyle factor when considering foreign property ownership, mentioned by 48%, but 42% said it was how easy the location of the property is to reach while 21% mentioned finding an up and coming area. ‘With unprecedented opportunities for overseas buyers given the low euro, property investors believe they can get more bricks and mortar for their money abroad. 'Over the next 12 to 18 months we could see a trend among residential and commercial property investors, focusing heavily on major European countries such as Spain, Portugal, Italy and France,’ said Daniel Webber, managing director of FXcompared. ‘Aside from the financial reasons for pursuing foreign property ownership, lifestyle choices are still playing a big role too, with better weather and transport links major factors when choosing where to buy investment property,’ he added. Continue reading
