The Government should abandon its Help to Buy mortgage support scheme in London says one of the housing markets leading players.
Nigel Wilson, the chief executive of Legal & General, believes that the scheme risks stoking a price bubble which will put homes out of reach for everyone except the most affluent.
Wilson, speaking to The Telegraph, argued that house prices in London and surrounding areas have reached “absurd” levels and that Help to Buy has pushed up demand at a time when the supply of affordable homes remains a problem.
60,800 mortgages were advanced in October 2013 totalling £9.7bn and representing a 24% increase on October 2012. This makes it the second highest lending month since November 2007, behind only December 2009 which saw the public clamber to buy before the end of the stamp-duty holiday.
Of this total, 26,800 loans were to first-time buyers (totalling £3.7bn) – a 16% increase on the previous month and a 33% increase on October 2012.
Second-steppers were slightly more active receiving 33,900 loans in October, a 19% month-on-month increase and a 16% year-on-year increase.
A new initiative in the UK is helping first time buyers get on the property ladder. The government’s new “Help to Buy 2” scheme could possibly help up to 665,000 homebuyers; buy a property with a deposit of less than £10,000.
House prices are continuing, resulting in many first-time home owners struggling to get on the property ladder. Furthermore, inflation is very high and wage increases are struggling to keep pace.
Demand for housing from first time buyers is on the rise, according to new research.
The study, by estate agents haart, also revealed that the average UK house price increased by 0.9 % in October, with the average has price now at £191,343 – a staggering 115% year-on-year increase.
The report revealed that the average price paid by first time buyers increased by 3.2% month-on-month and 6.1% annually to £152,593.
The Government’s Help to Buy scheme has given a boost to business in the construction sector, according to housing minister Kris Hopkins.
The minister made the comment whilst visiting the new Chesterton brick factory in Newcastle-under-Lyne.
After several slow years, the brick industry is increasing production and is planning to stay open over the Christmas period in order to keep up with demand.
Every home in England would fit on the same small amount of land we devote to full-sized golf courses, according to a shocking analysis of the UK’s housing shortage.
On estimates from Colin Wilkes of Inside Housing and the housing charity Shelter, roughly 1.1% of the country is used on full-size golf courses – the same area the government says is taken up by domestic buildings.
Smaller courses mean the full golf footprint is more than twice as a large. The finding comes as further figures show house prices driven upward by inadequate supply.
If you wish to buy a home near one of the top 30 best state schools in England then you are likely to pay an average of £31,500 extra, claims new research.
The top 30 state schools in England, defined as those secondary schools that achieved the best GCSE results in 2012, added an extra £31,490 (12%) compared to neighbouring locations in their county, according to Lloyds Bank.
Lloyds also found that nine of the top 30 schools commanded up over £80,000 extra compared to their surroundings. Read more…