There have long been stories in the news about the high prices of London property in relation to the rest of the country, but now steps are being taken to assist people who are buying their first property in the capital. As part of the recently announced Autumn Statement, it has emerged that a new London Help to Buy scheme is going to be brought in.
Under the current scheme, which was introduced in April 2013, first-time buyers in London can obtain Government-backed loans of up to 20 per cent of the property’s value. Under the new scheme they will be able to receive 40 per cent of this sum, with the rest coming from the usual mortgage sources such as banks and building societies. Buyers will still need to pay a five per cent deposit to secure their properties.
As experts with investment properties in Waltham Forest and the rest of London, we have been paying attention the Autumn Statement with interest to determine how it will affect the capital’s property market now and in the future. This new scheme could have a major effect for buyers, sellers and landlords alike, possibly encouraging more people to buy their homes rather than renting them.
However, buyers will still be taking on significant debts and the low uptake of the last Help to Buy scheme indicates that many people still prefer to live in rented homes, so it looks likely that London’s rental property market will continue to thrive. There is also the fact that the scheme is only available to first time buyers and UK residents to consider. Whatever happens in the future, we will always be on hand to help our clients navigate the latest changes in the property world and ensure they can achieve their goals.