insideKENT Magazine Issue 31 - October 2014 | Page 152
PROPERTY
Help to Buy Scheme picks up pace
With today’s increasing property market
and the re-emergence of developers in the
local area, it seems that the government’s
Help to Buy Scheme, which was introduced
last year, has now begun picking up pace
with many purchasers (both first time and
otherwise) opting to take advantage of the
scheme.
The Help to Buy Scheme offers two options
to purchasers, these being:
Equity Loan – The government will loan an
additional 20% of the purchase price over
a period of 25 years (interest free for the
first five years), and subject to eligibility.
You will be pleased to know that the
conveyancing team at leading South East
law firm, Girlings, has the relevant
experience and knowledge to be able to
assist with your equity loan or mortgage
guarantee on any purchase.
If you require any further information in
relation to the scheme, contact Kacy Ford
at [email protected].
www.girlings.com
Mortgage Guarantee – The government
will act as a guarantor for up to 15% of
your loan, whereby you already have a
minimum of 5% deposit available.
Kacy Ford, Girlings
South East Housing market 'pauses for breath'
The South East residential market
took a bit of a breather this summer,
with demand for new homes falling
slightly, supply still historically low,
and prices rising at a more
moderate pace, according to the
July RICS Residential Market
Survey.
In line with more member caution
reflected in some of the comments,
prices in the South East are now
expected to rise by 2.7% over the
next year – a decrease from the 12month prediction of 4.5% in May
and 6.3% in March. However, this
is still higher than the national
picture, whereby prices are
expected to increase by 2.6% on
a 12-month view (compared with
around 4% at the start of the year).
In the region, 4% more chartered
surveyors noted a rise in new buyer
enquiries by mid-summer, down
from a net balance of +33% in
January. Supply is also still
historically low, although with 4%
more chartered surveyors seeing a
fall in new instructions, this is an
improvement from a net balance of
-15% in January.
Prices in the region are still rising,
but at a more moderate pace, with
58% more respondents seeing a
rise by mid-summer, compared with
a net balance of +80% in January.
The same can be seen with price
expectations in the coming months,
with 30% more chartered surveyors
predicting rises compared to 59%
more predicting a rise in January
2014.
As the regions housing market takes
a breather, average stock per
chartered surveyor in the region are
at 29, down from 40 at the same
time last year and newly agreed
sales are declining.
In London, both sales and new
buyer demand fell more sharply
than elsewhere, with enquiries falling
at their fastest rate since April 2008,
and a net balance of 10% more
respondents reporting an increase
in prices. Across the UK as a whole,
sales expectations remain positive
at both the three and twelve month
time horizons, albeit a little less so
than previously.
market has been particularly pronounced, but that is in a sense consistent
with the move to a more sustainable market in the capital.
"Elsewhere around the country, the market in general is showing a greater
degree of resilience, but that largely reflects the fact that in some areas
the recovery has only recently taken hold and affordability is rather less
stretched. Significantly, members now expect price gains over the next
year to be faster outside of London, than in it.”
Simon Rubinsohn, RICS chief
economist, said: “A range of policy
initiatives adopted by the Bank of
England in recent months alongside
heightened expectations
surrounding a turn in the interest
rate cycle has clearly had an impact
on sentiment in the market. The
shift in the mood music amongst
potential buyers in the London
www.rics.org/uk
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