Tag Archives: government
UK help to buy schemes continue to benefit first time buyers, latest data shows
The UK’s flagship housing schemes aimed at boosting the property market continue to flourish with first time buyers benefitting the most, the latest published data shows. In the first two years of the Help to Buy Equity Loan scheme to the end of March 2015, some 47,018 properties were bought with the total value of these equity loans at £1.99 billion and the value of the properties sold under the scheme totalling £10.01 billion. The mean purchase price of a property bought under the scheme was £212,932, compared with a mean equity loan of £42,394 and some 82% of the homes were bought by first time buyers. Figures for the Help to Buy NewBuy scheme saw 17 home purchases were made in the first quarter of the year, bringing the total number of house purchases up to 5,706 since the launch of the scheme in March 2012. The Help to Buy Equity Loan scheme can be used to purchase a new build property up to the value of £600,000, with a maximum equity loan of £120,000. The numbers of homes purchased in the scheme to the end of March were greatest in the £150,001 to £200,000 price bracket, representing 30.9%. The data also shows that of total sales some 22.1% were for properties between £200,001 and £250,000. These two price brackets combined therefore accounted for over half of the total completions in the scheme. The median purchase price for all purchases in the scheme was £191,000 with the majority of sales are bunched in the lower price brackets. The mean equity loan was slightly higher at £42,394, and 19.9% of the mean purchase price. This reflects that the majority of completions in the scheme used the full 20% equity loan available. The most frequent type of property sold under the scheme were terraced houses, representing 29% of total completions, followed closely by semi-detached properties at 28.7%. Detached properties and flats made up 26.4% and 15.9% of completions respectively. The numbers of homes purchased in the scheme to date in terms of total applicant household income were greatest for purchasers with a household income between £30,001 and £40,000 a year, representing 25.2% of total completions. Some 17.8% of completions had applicants with a registered household income of between £20,001 and £30,000 a year, with 3.2% of completions with applicant household incomes lower than this. Some 80.3% of completions had applicant incomes of £60,000 or less, whilst 3% of completions had applicants with a registered household income in excess of £100,000 a year. The quarterly figures for the NewBuy Guarantee scheme are based on legal completion dates for transactions in the scheme as reported by participating mortgage lenders. This covers England only and shows data from the launch of the scheme on 12 March 2012 to 31 March 2015. The total value of the Government Guarantees for these completed sales was £59.5 million. To date, there have been no claims made with respect to the guarantees made… Continue reading
UK agency predicts a million tenants could lose out under rental plans
A million tenants in the UK could lose their rental properties as a result of one of the major party's policies on the private rented sector, it is claimed. Belvoir, one of the UK’s largest property management agencies, predicts that Labour’s pledge to introduce new anti-landlord rental policies could result in landlords leaving the sector. ‘I am shocked at Ed Miliband’s proposals and his decision to ignore industry experts who have issued dire warnings about the unprecedented suffering that his party’s policies are likely to cause to tenants,’ said Dorian Gonsalves, Belvoir’s director of commercial and franchising. ‘Under a Labour Government, landlords will be forced to commit to three-year tenancies and banned from raising rents above inflation. You don’t have to be a mathematician or property expert to work out how deeply flawed these policies are,’ he explained. He pointed out that there are currently 11 million people renting property in the UK, which amounts to about 20% of the population and includes 1.5 million families with children. ‘There are around four million rental properties available and if just 10 to 15% of landlords decide to withdraw from the rental market because they are uncomfortable with Labour’s proposals and feel unable to manage their risks, particularly when mortgage rates rise, these homes will no longer be available,’ he said. ‘These tenants will either become homeless or face the appalling consequences of having to move in with family and friends on a long term basis,’ he added. Gonsalves also pointed out that when you look at the promises made on new homes from all the main parties, the most that any party has pledged is 300,000 properties in the next five years. ‘Clearly this figure will not even begin to satisfy current demand, which is the reason that we’re facing a housing shortage,’ he said. ‘We should not forget that it was the Labour Government’s incompetence that contributed to the financial crisis of 2007 and 2008, which resulted in a credit crunch that has left millions of people unable to obtain mortgages or save for a deposit to buy their own home. It is therefore very short sighted and totally irresponsible of Labour to introduce policies that will drastically reduce the number of available rental properties,’ he commented. ‘Landlords are very tired of being made to look like criminals who are constantly looking to rip off tenants and provide low quality housing. In our experience, 99.9% of landlords are decent people that provide decent housing for tenants on a long term basis,’ he added. The Belvoir rental index shows that in most parts of the country there has not been the major rental increases that Ed Miliband speaks of. ‘However, if we look back over the past five to 10 years and apply Labour’s proposed inflation rule for rental increases to many parts of the… Continue reading
Christchurch housing market getting back to normal four years after earthquake
There has been a strong recovery in Christchurch’s residential housing market since the earthquakes in 2010 and 2011, according to the New Zealand government. Building and Housing Minister Nick Smith said that planning, median house price and average weekly rent data shows that supply and demand are getting back into balance since 10,500 homes were affected. Building consent data shows 1,134 new home building consents were issued in the year to February 2012, 1,509 to 2013, 2,818 to 2014, and 4,433 to 2015, totalling 9,894 homes. Median house prices increased from $320,000 in March 2012 to $359,000 in March 2013, a rise of 12% and to $401,000 in March 2014, another 12% rise, and to $415,000 in March this year, an increase of 3%. Average weekly rents in Christchurch increased from $344 in March 2012 to $378 in March 2013, a 10% rise, to $418 in March 2014, an 11% increase, to $418 in March this year, no increase. The Christchurch Housing Accord was developed in 2014 between the new council and the Government to complement the broad programme of work on Christchurch’s housing recovery, and to ensure stronger coordination between council and Government. The Government has initiated 10 different interventions and committed hundreds of millions of dollars to Christchurch’s post-earthquake housing recovery. These have included the provision of four temporary accommodation villages, additional support for emergency housing and Christchurch Housing Fund for joint housing developments between council and Government. Smith said that he is satisfied with the progress we have made in increasing the supply of new housing, but less satisfied that sufficient homes are being built in the more affordable range. ‘I am concerned at how difficult it is for first home buyers to get into the more expensive, post-earthquake housing market,’ he added. Smith hopes that the new KiwiSaver HomeStart package, which came into effect 01 April, will help the housing development sector to build more affordable homes. It includes grants of up to $20,000 for 12,000 first home buyers in Canterbury over the next five years for homes under $450,000. ‘The HomeStart scheme has been specifically tailored to the Christchurch recovery by allowing second chance first home buyers to be eligible, so that it will assist people who may not have been insured, or through other difficult circumstances, find themselves in a similar situation to a young person buying a first home,’ he explained. ‘The Christchurch housing market will be transitioning over the next two years to more normal market conditions. We will be reviewing the earthquake specific assistance packages as the market returns to normal, as well as ensuring that the momentum of the recovery continues,’ he added. Continue reading
