Tag Archives: assistance
New tax free savings vehicles launched for first time UK buyers
Would be first time buyers in the UK can now take advantage of a new financial product that allows them to save for a deposit on a home tax free. The government’s Help to Buy ISA launched today and means that people can save £200 each month, up to a maximum of £12,000, and the government will provide a 25% bonus on the interest and contributions, up to a maximum of £3,000, when the saver purchases a property. According to Mark Hayward, managing director of the National Association of Estate Agents (NAEA), it will provide a boost to first time buyers hoping to make the climb onto the property ladder. ‘It seems as though first time buyers are at the top of the government’s agenda following the further helpful initiatives announced during last week’s Autumn Statement which means that we might finally begin to see first time buyers cutting through the market. But he pointed out that although the Help to Buy ISA is a starting point for first time buyers and it will help them on the way to raising a deposit, there’s another major reason why they are feeling pushed out of the market and that is not enough homes to buy. ‘This is the lack of housing, specifically affordable housing available to all house buyers whether that be first time buyers, all the way to last time buyers. In order to help first time buyers find their feet in the market in the long term, the issue of supply needs to be addressed,’ explained Hayward. ‘Chancellor George Osborne’s announcement that he’ll be building 200,000 new starter homes is a good place to start, but until the wheels are put into motion, we just won’t see a substantial change for first time buyers,’ he added. Dave Bexon, Group sales and marketing director for Redrow Homes, welcomed the launch as raising a deposit is regularly cited as one of the biggest barriers to home ownership for young people. ‘This pioneering scheme should encourage a generation of renters to save for a down payment on a home, with the knowledge that the hard earned money they set aside will be topped up with a contribution from the Government,’ he said. ‘We're confident this assistance will encourage more would be home owners into the market which, longer term, is also key to helping to stimulate movement at all levels of the market,’ he added. He also pointed out that the existing Help to Buy equity loans continue to provide a valuable boost to purchasers of new build homes, enabling people to buy with just a 5% deposit with an equity loan of 20% from the Government, which is interest free for five years. Mortgage advisor Andrew Mannion, of RSC New Homes, one of several mortgage experts who offer advice to Redrow purchasers, also welcomed the introduction. ‘We feel that this scheme will be useful as it will boost a customer's deposit which,… Continue reading
UK property market sees lowest annual price growth since 2013
Annual UK property price growth was 3.7% in April, taking the average price of a home to £208,717, the lowest level of annual growth since July 2013, the latest index shows. Month on month prices were up 0.5%, according to the latest monitor report from haart estate agents. In London prices were up 1.9% month on month and 6.8% year on year to an average of £513,154. The data also shows that in April new buyer registrations fell by 1.6% compared with March, the first monthly fall this year, as buyers adopted a pre-election ‘wait and see’ attitude. Seller activity also slowed in April with new property instructions up just 1.5% month on month. The report also shows that house sales were up 3.3% in April compared to March but down 17.1% from April 2014. But there has been a post-election pick up in seller activity with the weekend after polling day seeing a 34% surge in new property instructions compared with the previous weekend. The average price of a first time buyer home increased 3.5% annually and 0.8% on the month. The report says that the new Help to Buy ISA, when the product is designed and implemented, will provide further assistance to first time buyers seeking to buy a home. First time buyers now make up 42.9% of all mortgages written, which is up slightly on March but still falls below 46.1% in April 2014. The average mortgage granted to first-time buyers is up 1.2% on the month in April and 2.5% annually. ‘The pre-election property market held its breath in April but the election uncertainty did not have an overall stifling effect on the market average property price growth for the UK slowed but did not come off the boil,’ said Paul Smith, chief executive officer haart, which has a network of over 200 branches across the country. ‘However, there was a drop in activity from sellers and prospective buyers in the run up as a wait and see attitude took hold of the market. We are already seeing the reversal of this with a flurry of activity from prospective sellers in the weekend immediately following the election,’ he explained. ‘Continuity of government, no mansion tax and supportive policies like the Help to Buy ISA should keep the property market on its upward trajectory for the rest of 2015,’ he added. Continue reading
UK’s new property redress scheme exceeds membership expectations
The Association of Residential Letting Agents has confirmed that the UK’s new Property Redress Scheme membership meets its membership requirements, as members join daily. The announcement follows compulsory legislation which means that since the beginning of October letting agents must be part of a government authorised redress scheme in order to operate. The redress scheme means that Tenants have a straightforward route to take action should they get a poor deal, while avoiding excessive red tape. ARLA membership guidelines state that all ARLA Licenced agents, or those agents wishing to become ARLA Licensed, must belong to an independent redress scheme in order to be a member. The PRS is one of three authorised redress schemes under the Department for Communities and Local Government, whose role it is to provide fair and reasonable resolutions to disputes between members of the public and property agents. ‘We’re very pleased to have approved the PRS to cover our consumer redress requirements for ARLA Licensed status. We have already received enquiries regarding membership from PRS members,’ said ARLA managing director David Cox. ‘ARLA Licenced agents are provided with the support and advice needed to help them carry out best practice. ARLA agents benefit from client money protection and the assistance that a trade body can offer,’ he added. Sean Hooker, head of redress for the PRS, welcomed the announcement and revealed that the PRS has now seen over 2,000 members sign up to the scheme with new members joining daily. He believes that the decision to do things differently has been a huge supporting factor in the scheme’s success so far. ‘We offer two different membership options so our scheme is both affordable and flexible whilst covering the needs of different types of Agents,’ he explained. ‘Giving Agents the opportunity to decide which model is best suited to them is something that sets us apart from the other two schemes and has contributed greatly to us reaching the 2,000 member target in such a short space of time,’ he added. Tim Frome, managing director of the PRS, said that this surge in membership has really exceeded expectations. ‘Estimates suggested there were 3,000 to 4,000 letting agents who would need to join a redress scheme. To achieve a membership of 2,000 in such a short time suggests that the majority of these agents have chosen to join the PRS or the number of prospective members was underestimated,’ he pointed out. Of the 2,000 members, 78 % of these have selected the Entry Model which is a pay as you go structure where the agent pays a smaller application fee of £95 plus VAT and then pays per complaint should the PRS receive it. The remaining members have opted for an all-inclusive Enhanced model that covers both their application and their complaints (subject to a fair usage policy) and costs £199 plus VAT. So far, over 97% of members have joined as a property agent with nearly 3% joining the scheme on… Continue reading
