The country is going through a cost-of-living crisis. People are struggling to save money and scrimping as much as possible. Although this has swept the country, the want to be homeowners is stronger than ever. Whether it’s because people desire more security, or want physical assets in this trying time, the demand is bigger than ever. In 2018, The Property Tracker survey conducted by YouGov found that 51% of people who don’t currently own their own home aspire to do so in the next ten years, but less than half of aspiring homeowners believe that this is likely in the next ten years. Due to high property prices, and the prices still rising due to huge demand of home ownership, people simply don’t believe they can afford to own their own homes. Although with a housing price crash estimated to happen soon, many will use this opportunity to try to get themselves on the housing ladder.
In this day and age, there are multiple generations that were told growing up that they would probably never own their own home. It was a harsh reality people have had to deal with. Although, new developments in the housing market have enabled many to make that first step onto the housing ladder. While the traditional mortgage path is the most known, this can still feel out of reach for many who wish to buy their own homes. Housing developers have developed new forms of financial help for those who wish to purchase property. But exactly how are developers helping first time homeowners get on the property ladder, and what financial schemes are being offered to first time buyers to aid them in purchasing property?
Help To Buy
Help to Buy is a government scheme to help first-time buyers purchase a property with a 5% deposit. The size of the loan available through the scheme is fully dependent on where the applicant lives. Although throughout the country homebuyers can borrow up to 20% of a home’s value, however 40% loans are available to those in London due to higher property prices in the capital.
In order to purchase a property with Help to Buy, the property must be a new-build home, sold by a Help-to-Buy registered homebuilder, must not have been lived in by anyone else before purchase and must be the only home you own and live in. The Help to Buy equity loan scheme has helped over 355,000 home buyers onto the property ladder since it was introduced. Unfortunately the Help to Buy scheme will stop accepting new applications on the 31 October 2022 as the scheme is due to end on 31 March 2023.
As with all financial routes to homeownership, Help to Buy has advantages and disadvantages…
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