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?
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.
However according to Property Wire, sales in the residential property market reached the point where they eclipsed pre-2009 levels by the end of 2014. Research from Lloyds bank showed that house sales in the first ten months of 2014 were 21% higher than they were in the corresponding period in 2013 and 60% higher than in the same period in 2009. Translation; the housing market has steadily improved since 2010 when the Conservatives took over the reins of power.
Help to buy
Andy Hulme, mortgages director at Lloyds Bank explained that “low interest rates, improvements in the UK economy and government schemes, such as Help to Buy, all appear to have contributed to the rise in home sales.”
Help to Buy is a scheme the government created to get first time buyers onto the property ladder. It allows them to purchase their first home (up to the value of £600,000) with a deposit of as little as 5%. The scheme has spurred an increase in first time buyers and this has helped raise the fortunes of the UK residential property market over the course of the past few years.
The “Starter Homes” scheme
However Help to Buy isn’t the only scheme the Conservative-helmed Coalition wish to initiate to encourage first time buyers to enter the property market. They also hope to set up the “Starter Homes” scheme.
Under the initiative first time buyers below the age of 40 will be able to register to buy a new home at a colossal discount of 20% of the market price. The Conservatives have promised that buyers will only have to repay the 20% price advantage if they sell up within five years.
Cameron pledges 200,000 “Starter Homes.”
Previously the government had pledged to provide 100,000 homes under the scheme, yet according to the BBC, the Prime Minister has now promised that by the year 2020, 200,000 houses will be available under the initiative if his party comes out on top in this year’s general election.
Cameron spoke out on the pledge during a speech in Colchester. He said that “a particular kind of security that comes with owning your own home” that “too many people have been denied,” due to what he called a “quiet crisis” in affordability.
The Prime Minister went on to say: “The young people in their 20s and 30s still living with their parents, desperately saving for their own place. The couple who want a child but can’t afford to upsize – even though they have both got have full-on, full-time jobs. It shouldn’t be this way. Our goal is a Britain where everyone who works hard can have a home of their own.”
“Everyone who works hard can have a home.”
That’s why if you wish to see the UK residential property market continue to progress you need to vote Conservative in the next general election. Figures have shown that they delivered on their pledge to raise the housing market and give everyone who works hard a home. This promise assures that Cameron and the Conservatives will continue to do so if they triumph in May.
Richard Carr believes the Conservatives have massaged the market well with a lot of very timely and clever ideas. The most recent has been the ‘Empty Buildings Credit’ which has encouraged Development. It’s simple, if you own a home do not vote Labour unless you wish to be poorer the next day!