Help to Buy scheme brings surge of prospective homeowners (From East London and West Essex Guardian Series)
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Help to Buy scheme brings surge of prospective homeowners
An estate agency is experiencing a surge of interest from prospective buyers as the second phase of the governments Help to Buy scheme is launched.
Haart, in George Lane, South Woodford, has had five times the amount of people contacting them and twice as many registering to buy after the scheme was introduced.
The second phase was proposed to start in January 2014, but was brought forward by David Cameron and will continue for three years.
The scheme is designed to allow buyers who can only afford a small deposit to buy a home.
Purchasers now only need a minimum five percent deposit, reducing the average deposit in London from £60,000 to £12,800.
Paul Smith, Haart chief executive, said: “We’ve seen incredible interest from people wanting to get on or move up the ladder, making this our busiest October for nine years. This means there has never been a better time to sell.
“We predict that property transactions will rise by 11% over the next 12 months, which will moderate the current excess demand in the market, taking the pressure off house prices.
“We see house prices rising only moderately in the coming months.”
But some agencies in Redbridge are not in agreement and believe that the scheme will make property prices rise considerably.
Neil Rothwell, manager at Elizabeth Pryce agency, Wanstead, said: “If there is a surge in demand it is only going to push property prices up.
“There are not enough properties out there at the moment so demand is only going to get higher and properties less affordable.
“It isn’t going to make much of a difference now, but maybe in a few years time.”
A spokesman from Kurtis Property Agents, Wanstead, confirmed he had barely seen a rise in interest and suspected residents in the area would not need to take advantage of the scheme due to high levels of wealth.
However prospective homeowners are welcoming the arrival of the scheme.
Prospective homeowner Jane Fenton, 30, of Prospect Road, Woodford Green, said: “The scheme makes buying a much more attractive idea than renting.
“In the long run it means you a throwing less money down the drain. Buying is going to be a lot more affordable.
“I want to get myself onto the property ladder in the next two years so this is very good news.”
Purchasers will need a minimum deposit of five percent of the purchase price and funds are also required to cover stamp duty, legal fees and moving costs.
Borrowers will also have to meet the scheme’s various requirements.
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