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What help is available for first time buyers?

What help is available for first time buyers?

by | Dec 23, 2020 | Advice

If you are thinking about buying a house and getting on the property ladder, you might be concerned about how difficult this could be. Many first time buyers feel like they are hitting a brick wall before they can even own one.

You may not know how much you can borrow or what fees you will need to pay. However, financial support and government schemes are available for first-time buyers to help them buy their first home.  

 

Stamp Duty Relief 

First-time buyers benefit from Stamp Duty Land Tax (SDLT) relief on a home with a purchase price of £500,000 or less. 

There is no stamp duty when the purchase price of your first home is £300,000 or less. If the purchase price is between £300,000 and £500,000, you will pay a 5% stamp duty, but only on the amount that exceeds £300,000. 

This means that if your house’s purchase price is £400,000, you pay 5% stamp duty on £100,000. You can calculate what you will pay using the government’s Stamp Duty Land Tax Calculator. 

 

Financial Support For First Time Buyers 

Three of the most useful first-time buyer schemes include:

Right to Buy/Acquire: For tenants in England, Northern Ireland, and Wales, you can buy your home from the local council at a discounted price.

Help to Buy scheme: First-time buyers can borrow 20% (40% in London) of a new build house’s purchase price, interest-free for the first five years. The house’s purchase price must be less than £600,000, and you must be able to put down a 5% deposit.

Shared Ownership: You buy part of a rented property with a mortgage and pay a reduced rent each month. You can buy a larger share later, up to 100%. Your income must be less than £80,000 (£90,000 London). 

How Has COVID-19 Impacted Housing Prices

How Has COVID-19 Impacted Housing Prices

by | Dec 23, 2020 | Latest News, COVID-19

After an initial pause in house sales early in the pandemic, there has since been a small boom over the summer, prior to the current lockdown, which has just ended. However, with the COVID-19 pandemic rumbling on, the completion of Brexit in January, and the government bringing the stamp duty cut to an end in April 2021, we are left wondering if house prices will continue to rise.

At the moment, estate agents across England, Wales, Scotland, and Northern Ireland are continuing with in-person viewings. This means that selling a house and buying a house can take place.

The Stamp Duty Cut

Housing marketing is in full swing with the varying-levels of temporary cuts to stamp duty. The savings depend on the country and the property’s sale price, but you could save up to £15,000 in tax if you complete on your home before April. This means that even if house prices fall slightly between now and then, you should still be in a good position.

However, for the moment, house prices are continuing to rise month on month, according to figures released by The Land Registry’s UK House Price Index.

 

Housing Market Predictions

In response to how the stamp duty cut might affect house prices, Nationwide states that it expects to see dampening housing activity. Halifax predicts downward pressure in the medium term, and Rightmove is warning buyers and sellers to be mindful of wider economic concerns.

If house prices begin to fall after the stamp duty cut comes to an end, those buying can now see their new home depreciate in value. However, a fall in the price of houses will be good news for first-time buyers and those on the cusp of affording their dream home. 

 For more information or advice contact our team today. 

How Has COVID-19 Impact What Is Most Important To Homeowners?

How Has COVID-19 Impact What Is Most Important To Homeowners?

by | Dec 23, 2020 | COVID-19, Latest News

The COVID-19 pandemic has seen homeowners reevaluate what is most important to them when searching for a new home. The virus has radically changed what homeowners perceive adds value to a home, as working patterns have changed, people commute less and are more likely to be working from home.

The country is seeing a shift away from so-called vanity features, such as a kitchen island or the house’s appearance from the road. Instead of the front of house curb appeal, people who are moving house are looking primarily for more space inside and outside the property. 

 

Change In Facilities Homeowners Want 

There are encouraging signs that the housing market is bouncing back. However, those who are buying a house have changed their priorities.

Homeowners are searching for properties that have a private garden, balcony, or roof terrace. With tough restrictions on socialising indoors, outdoor space couldn’t be more attractive to a prospective buyer. Homebuyers are also looking to buy in neighbourhoods with close proximity to parks, green spaces, and cycle routes.

Second, only to outdoor space, is the desire for a home office. Professionals are remote working, and a space where they can get away from the kids to work or have a Zoom meeting is highly attractive.

Properties with communal spaces are becoming less desirable, along with those located in the centre of built-up urban areas. There is, however, no change in demand for properties close to transportation hubs, such as bus stops and railway stations. 

 

Financial Support For Homeowners 

Homeowners are traveling less and spending more time at home. So it makes sense to invest in a house, renovate, or add an extension. BLG offers property development finance with the best rates to give homeowners affordable solutions to help them make changes and increase their homes’ value.

If you need financial support, get in touch with our team today. 

LTV Update from BLG Chairman Peter Wade

LTV Update from BLG Chairman Peter Wade

by | Jul 15, 2020 | Press Release

BLG’s Chairman Peter Wade announces BLG’s LTV rate increases to a maximum 65%.

How Coronavirus has affected the Property Market: Thoughts from the Industry

How Coronavirus has affected the Property Market: Thoughts from the Industry

by | Jun 26, 2020 | COVID-19, Latest News

The past few months have been a time of unprecedented change, with Covid-19 affecting us all personally, impacting every industry and indeed creating change around the globe. As we have started to settle into our new normal, I took the opportunity to meet up (virtually, of course) with a Monitoring Surveyor, Valuer, Lender and Solicitor to find out more about the effects Coronavirus has had on their businesses, work and the industry as a whole. 

 

The Monitoring Surveyor

The Monitoring Surveyor of our discussion group noted that social distancing on sites had been adhered to, with minimal on-site staff showing them in and out. Access to materials such as plaster have been problematic, but with suppliers re-starting production they are confident that this will be remedied soon. Of their 30 live sites, only 2 saw a shut-down due to Coronavirus but all are now open, with one site having 22 parties lining up to view the units prior to completion.

The Valuer

The Valuer in our discussion group has sent staff to sites, fully adhering to PPE requirements, but have found some tenants denying access. They have been able to continue to value properties, however and continue to be busy – with their industrial team being particularly in demand at present. The Valuer noted that PD schemes have mainly been retained as investments, with no current evidence of a major yield shift on larger developments. They have noted a significant uptick in quotes in the last two weeks, with cities outside London in particular picking up in activity. Sheds and beds are the key focus.

The Lender

The Lender has seen somewhat less disruption in recent months, with only 1 out of 41 sites experiencing a Covid-19 related shut down and that site is now back up and running. Recent weeks have also seen an explosion of new enquiries coming in, reminiscent of the figures they last saw in February.

The Solicitor

The Solicitor of the group mentioned that while refinances have been progressing as normal, site acquisitions saw the majority stalling albeit still moving along gradually. However, with 4 completions in the last two weeks, activity is picking up now with their residential property team very busy.  

Moving Forwards

As we move into the next phase of lockdown, a ‘new normal’ will start to emerge. With a few months of working effectively from home under their belts, the Valuer in the group believed that their numerous offices and desks could be downsized in the future with less time in the office. The Solicitors and Monitoring Surveyor agreed with that thought to a lesser extent, believing that there would continue to be a need to have a communal working location. Wherever the location, on the whole, the group agreed that green shoots are starting to be seen within the industry and are cautiously optimistic that things are starting to move once more in the right direction.

By Fintan O’Riordan, BLG’s Business Development Director.

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