Posts with tag: first time buyers

Restrictions on Shared Ownership Scheme to be Dropped

Published On: December 8, 2015 at 9:15 am

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Restrictions on Shared Ownership Scheme to be Dropped

Restrictions on Shared Ownership Scheme to be Dropped

The shared ownership scheme will be broadened so that buyers can use the system more than once, David Cameron has announced.

People already living in a shared ownership home will be able to move to another, allowing them to use the capital they have gained.

Restrictions on the scheme will be dropped, such as limiting eligibility to key workers. From April, anyone earning below £80,000 across England and £90,000 in London will be able to use the system.

Cameron stated: “So many people are attracted to this idea, especially those who thought they’d never have a chance of owning a home.

“But, because it’s been heavily restricted, many of those people have missed out. We’ve had local councils dictating who is eligible, based on everything from salary to profession to where the buyer comes from.”1 

In cheaper parts of Britain, buyers will be able to use the Help to Buy scheme to purchase a shared ownership home with a deposit of just £1,400.

A recent report from Leeds Building Society found that there were many misconceptions about shared ownership, including that these properties are difficult to get mortgages for.

Managing Director of the National Association of Estate Agents (NAEA), Mark Hayward, comments: “It’s welcome news that the Government is putting the proposed plan for expansion of shared ownership into action.

“By relaxing some of the existing restrictions, a potential 175,000 aspiring homeowners will be given the opportunity to own their own home, as well as allowing existing shared ownership homeowners the opportunity to step up the ladder.”1 

1 http://www.propertyindustryeye.com/cameron-announces-broadening-of-shared-home-ownership-scheme/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affordable rent to buy homes in Plymouth

Published On: December 3, 2015 at 11:01 am

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Details of the UK’s first affordable rent to buy homes on a development in the South West of England have been announced.

Housing companies Persimmon Homes and Rentplus, based in Plymouth, have both signed an agreement to develop 19 new affordable rent to buy homes in the city. It is hoped that this will assist in countering the region’s housing shortage and greatly help first-time buyers onto the ladder.

Development

These properties are part of a development of 139 homes built by Persimmon Homes on William Prance Road, Derriford, as part of Plymouth’s Council’s Get Plymouth Building scheme.

Chief Executive of Rentplus, Richard Connolly, said, ‘with average house prices in the South West now close to £230,00 and in some places more than £300,000 and average earnings in the region among the lowest in England, we have an unbelievable housing situation where many houses cost more than 10 times the average annual household income.’[1]

‘Rentplus is designed to make housing accessible for all those who wish to own their own home and we look forward to working with partners in Plymouth and across the country to help to tackle the housing crisis,’ he added.[1]

Affordable rent to buy homes in Plymouth

Affordable rent to buy homes in Plymouth

 

Affordable

The first set of homes are now complete, with Rentplus working with Tamar Housing Society to try to identify suitable tenants. These Rentplus properties are available at affordable rents up to 80% of the local market rent, for a period of between five and twenty years. Once this tenancy has concluded, tenants will be given the chance to buy their rental home, given an additional 10% deposit by Rentplus in order to achieve this.

Figures from the recently released South West Housing Initiative indicate that the region is the largest growing in the country. However, the area also has the largest housing crisis. Further research from the National Housing Federation shows that renters in the South West spend an average of 35% of their wages on rent. This is the third highest rent to income ratio in the country.

Julie Barnett, chief executive of Tamar Housing Society, thinks that it is critical to provide affordable housing to those who are most vulnerable. Encouragingly, she believes that, ‘these new homes go a long way towards helping to tackle the housing crisis we are currently seeing across the South West.’[1]

‘At a time when social landlords across the country are facing cuts, companies like Rentplus are offering an alternative, sustainable opportunity for long term tenancies and home ownership for residents without the need for any public subsidy,’ she concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-buy-rent-homes-2015120211271.html

 

 

Mortgage Lending Up 17% Over the Year

Published On: December 1, 2015 at 10:00 am

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The amount of mortgage approvals increased to 69,630 in October, up slightly from 69,012 in September, according to the Bank of England (BoE).

October’s number is also higher than the 68,099 average recorded over the past six months.

Mortgage Lending Up 17% Over the Year

Mortgage Lending Up 17% Over the Year

The value of new mortgage approvals reached £12.2 billion. Analysts had predicted 70,000 mortgage approvals for October, but the slightly lower figure was still 17.2% up on October 2014, from 59,423.

Chief Economist at IHS Global Insight, Howard Archer, says mortgage values are rising as house prices continue to increase.

He continues: “While housing market activity has clearly picked up appreciably overall during 2015, the slight easing back in mortgage approvals for house purchases from August’s peak levels could possibly reflect housing market activity being constrained by a shortage of properties on the market.

“It is also evident that mortgage activity has been lifted in recent months by people looking to tie in attractive mortgage interest rates before interest rates start to rise.”1

The amount of remortgaging approvals dropped to 39,629, from around 41,000 in September. However, October’s figure still sits ahead of the six-month average of 38,430.

Total lending to individuals grew by £4.8 billion in October, higher than the average monthly increase of £4.1 billion for the last six months.

CEO of Marsh & Parsons, Peter Rollings, comments on the BoE’s data: “Lending has rebounded after September’s downward blip and mortgage approvals have leaped an impressive 17% year-on-year.

“All the vitals are looking strong, and remortgaging and locking into long-term deals will still very much be the name of the game for many existing homeowners awaiting potential interest rate movement in 2016.

“These figures only look at October, and George Osborne’s package of housing announcements in the Autumn Statement last week will have keyed up a new wave of first time buyers eager to get their foot in the door.

“We may also see a winter flurry of buy-to-let borrowing before April’s Stamp Duty shake-up, as landlords seek to invest before the additional charge is levied on second homes.

“The big question as we enter the New Year is whether the supply of homes will match the increasing demand that’s clearly evident in the mortgage market.”2

In a separate study, the National Association of Estate Agents (NAEA) found that house sales to first time buyers accounted for 31% of sales in October, the highest proportion since August 2009.

It also reported that inventory increased by 16% month-on-month, up from 37 properties per branch to 43. However, it said that demand fell for the fourth consecutive month.

The NAEA revealed that there was an average of nine sales per estate agent branch in October.

1 http://www.cityam.com/229859/mortgage-lending-rose-in-october-according-to-the-latest-bank-of-england-credit-report 

2 http://www.propertyindustryeye.com/mortgage-approvals-for-house-purchase-up-17-in-a-year-says-bank/

 

First-time buyer sales in six-year high

Published On: November 30, 2015 at 11:17 am

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A new report from the National Landlords Association of Estate Agents has revealed that the average number of sales made to first time buyers increased for the second consecutive month.

In fact, last month’s rise brought totals to their highest level in over six years.

Increases

During October, there was an average of nine sales secured per estate agent branch, with 31% of these sales made to first-time buyers. This was a rise from the 29% recorded in September. In August, just 20% of these transactions were to first-time purchasers.

‘It’s really promising that, for the second month running, the number of sales being made to FTBs has risen,’ noted Mark Hayward, managing director of the National Association of Estate Agents. ‘Competitive mortgage products and the increasing pressure of an interest rate rise could be encouraging first steppers to take the plunge, as well as the dwindling supply of rental housing stock-putting pressure on renters to buy.’[1]

Seasonal Shift

The supply of available housing rose in October before the traditional Christmas slowdown. The number of properties available to purchase per branch rose by 16% from 37 in September to 43 in October. However, demand for property dipped slightly from an average of 342 house-hunters per branch in September, to 336 last month.

First-time buyer sales in six-year high

First-time buyer sales in six-year high

Hayward noted, ‘although it is great to see supply growing and demand falling-albeit by just two per cent, we cannot rest in knowledge that the housing market is on the road to recovery. What we’re seeing is a seasonal uplift. Those selling their homes are keen to push through sales before Christmas, hence the uplift in properties entering the market-but with the average sale taking between nine and twelve weeks, it’s unlikely transaction will be pushed through before Christmas now. Buyers are holding off until January to kick off the New Year with a house-hunt.[1]

‘The only way we can attempt to repair the market is simply by building more houses. Osborne’s pledge last week to build 200,000 new and affordable starter homes-with a discount for those under the age of 40-and his promises to offer loans to small builders, reform the planning system and re-designate commercial land to build new homes are all a step in the right direction. But until it’s all put into motion and we see the walls of new properties going up, we’re not holding our breath,’ he concluded.[1]

[1]http://www.propertyreporter.co.uk/property/ftb-sales-at-six-year-high.html

 

 

London Help To Buy Scheme Announced

Published On: November 27, 2015 at 10:18 am

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In the Autumn Statement, the Help to Buy scheme was altered slightly to assist first-time buyers looking to purchase property in the capital.

The scheme is very similar to the existing Help to Buy equity loan, but now, those looking to buy in London can borrow up to 40% of the home’s value, instead of the previous 20%.

Changes

London Help To Buy will apply to new properties worth up to £600,000 in any of the capital’s boroughs and the City of London. Applicants have to be eligible for a mortgage in order to qualify for the scheme. In addition, mortgages must be for at least 25% of the overall property value.

Adrian Anderson, director of mortgage broker Anderson Harris, commented that, ‘Help to Buy has been hugely successful across the country but hasn’t had such a big impact in the capital because property prices are that much higher. Offering a 40% interest-free loan to London buyers will make a huge difference, enabling many to get on the housing ladder when they simply couldn’t before.’[1]

London Help To Buy Scheme Announced

London Help To Buy Scheme Announced

‘Take the example of a one-bed flat in Camberwell on the market at £360,000. A 5% deposit works out at £18,000 but if you don’t buy via Help to Buy, you then need to raise a mortgage for the remainder, which requires earnings of circa £85,000, pricing out many buyers,’ Anderson continued. ‘Under London Help To Buy, a 40% interest-free loan would be available, leaving you with a mortgage of just £198,000 to raise. This could be done with an income of £50,000, which is much more achievable in the capital,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/11/london-help-to-buy-scheme-launche

 

 

 

Chancellor set to pledge cash for new homes

Published On: November 25, 2015 at 11:35 am

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The Chancellor is set to unveil the government’s spending plans up to 2020 later, which is likely to include billions of pounds worth of cuts. However, there is likely to be good news for housebuilding projects.

Mr Osborne is due to pledge nearly £7bn in order to make housebuilding a priority, with in excess of 400,000 affordable homes to be built in England.

Announcement

This afternoon’s combined Autumn Statement and Spending Review is sure to be of interest to all connected with the property market.

Osborne has promised to address what he calls, ‘a crisis of home ownership in our country,’ giving support to a, ‘bold plan to back families who aspire to buy their own home.’[1]

The Treasury has described the proposals as, ‘the biggest affordable housebuilding programme since the 1970’s.

This is set to include:

  • £2.3bn paid straight to developers to build starter homes, aimed at first-time buyers. These purchasers will get a 20% discount on prices up to £450,000 in London and £250,000 elsewhere in England
  • £4bn to assist in building 135,000 ‘Help to Buy: Shared Ownership homes for households earning up to £80,000, or £90,000 in London
  • £200m for 10,000 new properties that tenants can live in for up to five years while they save for a deposit. After this period, they will get first-right to buy the home
  • £400m to fund 8,000 specialist homes for elderly people or those with disabilities
Chancellor set to pledge cash for new homes

Chancellor set to pledge cash for new homes

Encouraging

Stewart Baseley, executive chairman of the Home Builders Federation, noted that attempts to improve supply in the market were beginning to come to fruition. He said that recent housebuilding statistics were, ‘very encouraging.’

Unsurprisingly, Labour do not agree, brandishing the Conservatives’ record as a,’ failure on every front, pointing to the fact that home ownership is at its lowest level for a generation.

‘If hot air built homes, then Conservative ministers would have our housing crisis sorted, ‘quipped shadow housing minister John Healey. ‘A matter of weeks ago, the housing minister promised a million more homes, now George Osborne is saying they’ll build 400,000 more. Rather than rate them on what they say they will do, people will judge them on what they’ve actually done,’ he continued.[1]

[1] http://www.bbc.co.uk/news/uk-politics-34915218