Tag Archives: knowledge
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
Sales to first time buyers up in the UK, latest estate agent data shows
The number of sales made to first time buyers in the UK rose for the second month running, to the highest level in six years, according to the latest housing market report from the National Association of Estate Agents (NAEA). The October report show that there was an average of nine sales made per estate agent branch in total and 31% of these sales were to first time buyers. Last month, the group accounted for 29% of all sales, and in August just 20%, showing an 11% jump in just two months. ‘It’s really promising that, for the second month running, the number of sales being made to first time buyers has risen. 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,’ said Mark Hayward, NAEA managing director. The report also points out that the supply of available housing increased in October, ahead of the Christmas slowdown. The number of properties available to buy per branch increased by 16% from 37 in September to 43 in October. On the other hand, demand for property dropped slightly from an average 342 house hunters per branch in September, to 336 in October. ‘Although it is great to see supply growing and demand falling, albeit by just 2%, we cannot rest in the knowledge that the housing market is on the ‘road to recovery’. What we’re seeing is a seasonal uplift,’ said Hayward. ‘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 12 weeks, it’s unlikely transactions will be pushed through before Christmas now. Buyers are holding off until January to kick off the New Year with a house hunt,’ he explained. ‘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 added. Continue reading
New accreditation standard for London lettings hailed a success
More than 115,000 rented homes across London are now badged under the Mayor's Rental Standard accreditation system launched last year to improve the experience of landlords and tenants. Less than a year since its launch in May 2014, the London Rental Standard is going from strength to strength with 307 letting agent firms signed up and eight accrediting bodies licensed under the scheme. It has been adopted by 10 of the biggest names in the lettings industry, including Spicerhaart, Andrews, CBRE, Chestertons, Douglas and Gordon, Savills, Knight Frank, Leaders, Foxtons and Stirling Ackroyd. Londoners either letting or renting through every London branch of these firms are assured that they, and every landlord or agent displaying the London Rental Standard badge, have met the Mayor's set of core commitments and training levels to offer tenants a better, more professional service. These include transparent fees, better property conditions, better communications between landlords and tenants, improved response times and repairs, and protected deposits. Some 30% of London's households now live in rented homes, and by the middle of the 2020s the number of renters is predicted to overtake the number of home owners in the capital. In the last 10 years the number of families with children renting in London has risen 10% to almost a third yet 85% of landlords are not aware of core legislation that protects renters and 61% have no professional management training. The London Rental Standard is fast becoming an important feature of London's lettings industry, helping Londoners to pick between the huge array of landlords and agents on offer in the capital. It helps landlords and agents to understand their responsibilities to their tenants and to equip them with the knowledge they need to protect themselves from mistakes which can incur hefty costs and leave tenants disgruntled. The standard is one of a raft of measures the Mayor Boris Johnson has supported to improve the experience of London's two million private rented sector tenants. This includes successfully lobbying for legal changes to make it compulsory for letting agents to join an independent consumer complaints scheme to help protect tenants and landlords, and banning retaliatory evictions. He has also created a search engine where Londoners can compare average market rents, secured significant sums from the Government to help provide greater enforcement against criminal landlords including those who rent out beds in sheds, and pioneering thousands of new high quality, purpose built homes to rent with large scale schemes on public land in Elephant and Castle and the Stratford, supported by long term institutional investment. The Mayor is also helping renters who want to buy through his First Steps scheme, with more than 46,000 Londoners already supported to buy their home through shared ownership and other products. The Mayor is now calling on all remaining letting agents and landlords to sign up to the London Rental Standard, and help to stamp out rogue agents or landlords in every corner of… Continue reading
