First time buyers are benefitting from the Help to Buy ISA
The initiative, launched in December 2015, has seen over a quarter of million people open up one of the financial products. Encouragingly, more than half of those signups were made my people aged 30 and under.
The scheme allows savers to be given a maximum of £3,000 by the government to help them purchase their first home. Savers can put away £200 a month into the dedicated ISA with the government topping it up by 25%; the first bonus was paid to savers this week who opened up an account in December.
For couples aiming to save for their first home, individual accounts can be opened which amounts to a potential boost of £6,000.
Other Help to Buy schemes such as the mortgage guarantee and equity loan have also proven popular with over 100,000 home buyers involved.
Housing supply in Britain remains a huge problem – and the outlook only looks worse, writes property developer Richard Carr.
First time buyers are suffering
In December last year (2015) the average number of properties available per estate agent branch was just 37. This is considerable drop compared to the same month in 2005 when 72 houses were on the market. 45 homes were available this time last year.
The National Association of Estate Agents research shows that the supply of available housing to buy in the UK has almost halved in the last ten years, which is heavily contributing to the problems first time buyers are finding getting onto the property ladder.
The above figures is estimated to be available of institutional investment to build and managed new, purpose built rental properties.
Currently nine million Brits rent accommodation and under this new shift which will see a more professional run market they will benefit from better value, greater transparency and purpose built homes/flats.
Of those 100,000 buyers, the latest data shows that some 80% of scheme completions were made by first time buyers.
That percentage is expected to rise after autumn 2015 following the introduction of the Conservatives’ Help to Buy ISA, which will provide savers with a monthly bonus.
The average house price of homes via the scheme was below the national average at £184,000, whilst over half of transactions have been for new build homes. This is a good sign for developers and construction firms moving forward and for the country’s economy, which relies heavily on a growing and prosperous construction sector.
Prime Minister David Cameron has promised to build 200,000 “Starter Homes” in the UK if his party triumph in this year’s general election.
On his blog today Commercial and Residential Development Specialist Richard Carr explains why if you want the UK residential property market to keep growing, you need to vote Conservative in May.
How has the residential market performed under the coalition government?
David Cameron pledges 200,000 Starter Homes
Let’s start by looking at where the UK residential market was back in 2010, when the Tory-led coalition first took power and where it is now. Cameron inherited a residential property market that was clamped in the grip of the recession. Capital was hard to find which kept house prices down and first time buyers off the property ladder.