15,000 Renters In Help To Buy Stampede

Thousands of frustrated renters have joined a stampede to secure loans from George Osborne’s new London-only homebuying scheme in its first week. The huge response from more than 15,000 first-time buyers desperate to clamber on to the housing ladder is far bigger than expected and comes just seven days after the Help to Buy London initiative was launched. Mortgage brokers said they had been “deluged” by enquiries from tenants stuck in the “rental trap” and previously unable to save enough cash for a deposit.  The scheme allows buyers with just a five per cent deposit to apply for government equity loans covering up to 40 per cent of the value of a new-build property. This means they only have to raise a mortgage for  55 per cent of the agreed price. Read more on the Evening Standard website.

London Help-To-Buy Scheme To Launch In February

A government scheme offering homebuyers in London loans of up to £240,000 to help them buy new-build properties will go live on 1 February. Help to buy London is an extension of the equity loan scheme that has been available to buyers around the country since April 2013, which doubles the amount of money being offered from 20% of a property’s purchase price to 40%. While mortgage rates are still at record lows and lenders are increasingly willing to offer loans to first-time buyers, high house prices in the capital have locked many out of the market. To meet affordability checks and qualify for mortgages, borrowers have had to raise increasingly large deposits. Read more on the Guardian website.

Taylor Wimpey Warns Over Plan To Build Discounted Homes For First-Time Buyers

Taylor Wimpey has warned that the government’s plan to build more than 200,000 discounted houses for first-time buyers could be in doubt because of confusion about how the scheme would work. Pete Redfern, chief executive, said the starter homes programme outlined in the autumn statement could work, but big questions remain unanswered, including over the impact on the affordable housing sector.  The government is introducing a new help-to-buy scheme for London and will lend buyers up to 40% of their deposit. Redfern said he supported the government’s aims and Taylor Wimpey wanted to take part in the plan, but that two key questions were how the 20% discount would be set and the involvement of local authorities. Read more on the Guardian website.