On 15 December, a new initiative was announced regarding Starter Homes, which is a solid stepping stone to helping the UK property market get back on it’s feet, specifically aimed to help first-time buyers. If you are under 40 and buying or want to buy your first house, find the details here.
The current state of affairs in the UK property market
Since the fall in the economy in 2008, the building of new homes has decreased and has become a real issue for the UK property market. Granted, there has been a slow improvement over the last six years however, the bottom line is that there is still a significant shortfall that needs addressing.
The Starter Home scheme will help first-time buyers to get onto the ladder, something which is particularly tricky to do right now.
Associate dentists and junior doctors who are interested in buying their first home this year, should start the application process soon as there is limited availability.
What’s happening now with new homes
Currently, builders of new homes have to cough up, on average, £15,000 on Section 106 affordable housing fees and levies. These charges mean that the cost of building the property increases and subsequently they are passed on to the buyer as part of the property price.
The Starter Home scheme
The scheme has already started from the beginning of the year so property builders are now able to build new homes without the Section 106 tariff and without any planning costs, by using under used land.
This means their cost of the build is less and they must offer the house at a reduced price for a fixed period.
Savings can then be passed onto the buyer. 20 percent discount will be offered to 100,000 first time buyers to stimulate interest in this scheme and in UK property.
Can I apply?
The following are the criteria:
- Under 40 years old
- First time buyers
Registration for those interested is open; a little earlier than expected, as the scheme was only going to be available from mid-2015.
How will this help the housing issue?
It is a short term means to help the current housing shortage in the UK. Alone, it is unlikely to solve the depth of the problem but at least new houses are being built with generous discounts to help progress matters.
Mortgages for first time buyers
Organising your first mortgage can be a confusing time. The market has many options from many different mortgage lenders and it isn’t always easy to know which is the best deal.
Try our mortgage tool for an instant online quote.
Even if you don’t have a huge deposit there could be options available to you. Using a mortgage adviser will mean peace of mind for your first house purchase. The various different mortgage terms and rates can be explained to you as well as help every step of the way with the application process.