Posts with tag: Help to Buy London

Over 15,000 Hopeful Buyers Interested in Help to Buy London

Published On: February 10, 2016 at 3:28 pm


Categories: Finance News

Tags: ,,,,

The Help to Buy London scheme has received more than 15,000 expressions of interest since it was launched on 1st February.

The Government scheme is aimed at helping the capital’s buyers get onto the property ladder.

Over 15,000 Hopeful Buyers Interested in Help to Buy London

Over 15,000 Hopeful Buyers Interested in Help to Buy London

It offers those with a 5% deposit an interest-free equity loan of up to 40% of a property’s purchase price. Buyers using the scheme can only purchase new build homes worth up to £600,000.

They will then need a mortgage of up to 55% of the property’s value.

Find out more about how to access the Help to Buy London scheme here: /help-to-buy-london/ 

However, property expert Henry Pryor has criticised the scheme due to the risk of negative equity.

He states: “Most people taking up the Government’s offer have no first hand experience of negative equity. You need to be over 35 to have lived through a property recession in the capital.

“They are scary things and although you will be sharing the pain with Government, the state will want its money back before you get yours.”1

The Head of Residential Research at JLL, Adam Challis, also expresses concern.

He adds: “I am concerned that the Government’s narrow focus on first time buyer support overlooks the hundreds of thousands that join the private rented sector each year, or the millions on housing waiting lists.

“Help to Buy only addresses a very narrow band of genuine housing need and represents a distraction from the bigger housing supply crisis in this country.”1 

Do you believe the Help to Buy London scheme will have an adverse effect on London’s private rental sector?


Rightmove Reports Busiest Ever Month for Traffic in January

Published On: February 5, 2016 at 9:23 am


Categories: Property News

Tags: ,,,,

Rightmove has reported its busiest ever month for traffic, with visits up by 21m in January compared to the same month last year.

The property portal also says that leads to agents and developers reached a new record high of more than 4.9m.

The surge in traffic follows a decline in available stock for sale, meaning it is likely that visitors could not find many new listings to browse.

There were over 127m visits to Rightmove last month, up by around 20% on January 2015 and surpassing the previous record of 118m set in August last year.

Rightmove Reports Busiest Ever Month for Traffic in January

Rightmove Reports Busiest Ever Month for Traffic in January

Phone and email leads also beat a past record of more than 4.8m set in July 2015.

In total, Britons spent the equivalent of over 2,000 years browsing Rightmove in January. The busiest day was Tuesday 26th, which saw 4.7m visits.

Additionally, page views for the month hit a new record of 1.7 billion, meaning that people searched through more than 1m more pages of property than in January last year.

The most popular areas that people searched for were London, Bristol, Cambridge and Milton Keynes.

Miles Shipside, the Director of Rightmove, comments on the data: “These January statistics should give both sales and letting agents confidence that an active year with plenty of business opportunities lies ahead.

“While January is usually a very busy month for home hunting, the scale of these records shows just how habitual Rightmove has become when people are starting their property search.”

He continues: “As Rightmove is the only place where people can search over 1m properties for sale and to rent, it’s clear that buyers, renters, sellers and landlords are all using us to search the whole market.

“The busiest ever start to the year gives a very confident outlook for the coming months, with some of the surge possibly coming from investors looking to make last minute deals before the changes to Stamp Duty come in on April 1st, as well as first time buyers looking to see if any of the schemes could help them get a foot on the property ladder.”1

We recently reported that landlords are rushing into the market ahead of buy-to-let tax changes this year. Find out more about the forthcoming amendments here: /landlords-rushing-to-avoid-buy-to-let-tax-changes/

Additionally, the Help to Buy London scheme launched at the start of this month, which could create heightened activity in the capital.


The Average House Price at Each London Underground Station

Published On: February 4, 2016 at 4:04 pm


Categories: Property News

Tags: ,,,,,

Are you looking to invest in the London property market ahead of buy-to-let tax changes this year? Or maybe you’re one of the homebuyers looking to take advantage of the London Help to Buy scheme, which launched on Monday?

Whichever way you’re going to buy, if you’re considering the property market in the capital, it is vital that you pick the best place to purchase.

Thanks to online estate agent eMoov, you can now compare house prices across the London Underground with the firm’s alternative Tube map.

For each of the 280 stations on the Underground, eMoov has found the average house price in that area.

Last year, we published a similar map, which shows how much it costs to rent near each Tube stop. And the two maps show some similarities…

Take one of the cheapest rental prices for example. Renting in Hatton Cross cost just £324 per month back in September, and indeed, it is still one of the cheapest places to buy this year, with house prices around £292,000.

Dagenham Heathway also has some affordable properties – the average house costs just £238,000. However, renting in this area was more expensive last year, at £796 a month.

While not all rent prices/house prices correlate, expensive spots are pricey across all tenures.

Properties in Hyde Park Corner go for an average of £1.9m, while tenants will need a huge £2,920 per month to rent there. However, rents are cheaper in Piccadilly Circus, at £2,256 a month, while house prices average a whopping £2.6m.

Landlords are reminded that buy-to-let investors and second homebuyers will be charged an extra 3% in Stamp Duty after 1st April, which is causing many investors to rush into the market now in order to beat the deadline. Find out more: /landlords-rushing-to-avoid-buy-to-let-tax-changes/

Those looking for help with saving for a deposit can apply for Government-backed equity loans of up to 40% of a new build property’s purchase price worth up to £600,000 through the Help to Buy London scheme. For more information visit: /help-to-buy-london/

Use the map to find out where you can afford to buy:

Help to Buy London Launches Today

Published On: February 1, 2016 at 9:25 am


Categories: Finance News

Tags: ,,,

The Help to Buy London scheme is launching today, with lenders competing for a wave of new business.

The Government is offering buyers of new build properties equity loans of up to 40% of the purchase price. The borrower will need a 5% deposit and a mortgage. The scheme applies to properties worth up to £600,000 in London.

Help to Buy London Launches Today

Help to Buy London Launches Today

Nationwide and Leeds building societies are some of the first to launch products for the scheme, while Barclays has introduced new rates.

Borrowers can get a two-year fixed rate deal at 1.55% with a £999 fee, or 1.85% with no fee from Barclays.

For longer-term borrowers, the bank is offering a five-year fixed rate of 2.19% with a £999 fee, of 2.49% for a fee-free deal.

These are currently the lowest rates available for Help to Buy London.

Today, Leeds is launching a two-year fix at 1.79% with a £799 fee and a five-year fix at 2.45% with a £199 fee.

Nationwide has updated its shared equity products, which include Help to Buy London and the wider equity loan schemes.

It has a two-year fix at 1.89% with a £999 fee, or 2.29% with no fee at 60% loan-to-value (LTV).

For a 75% LTV loan, Nationwide has a two-year fix at 1.99% with a £999 fee, or 2.39% with no fee.

It is also offering five-year fixed rate deals up to 60% LTV, one at 2.64% with a £999 fee, or a fee-free deal at 2.84%.

At 75% LTV, rates start at 2.74% with a £999 fee, or 2.94% with no fee.

Those applying for a mortgage with Nationwide can receive a fee-free standard valuation, plus £250 cashback if they have a Nationwide Flex main current account.

Help to Buy London is an extension of the Help to Buy: Equity Loan scheme, launched in 2013.

The Government is hoping to boost homeownership levels by providing financial support to enhance a buyer’s deposit.

Outside of the capital, borrowers can top up their 5% deposit with an equity loan of up to 20%, meaning they can effectively put down a 25% deposit.

However, for those in London, where the average house price is £506,724, a 5% deposit is still a huge £25,336.

Homebuyers can also take advantage of Government-backed schemes such as Help to Buy: Mortgage Guarantee and the Help to Buy: ISA.