Rinlgley group logo
  • Home
  • Who We Are
    About Us Our People Awards Savings for Clients Results for Clients Green Management Strategies Market Overview Leasehold Reform Campaign Money Back Guarantee
  • What We Do
    • Block Management
      • Block Management Overview
      • for RTM Companies
      • for Freehold Management Companies
      • for Resident Management Companies
      • for Estates of Houses
      • for Freeholder Investors
      • Ground Rent Collection
      • How to Change Agent
      • Block Management Packages
      • Can't Afford an Agent?
      • Legal work & Tribunals
      • Section 20 Major Works
      • Ringley's Top 10 Tips
      • Staff on Site
      • Moving or Buying?
      • Report an Incident
    • Asset Management
      • Asset Management Overview
        • Asset Management Overview
        • Stabilised Assets
        • Project Monitoring
        • Mobilisation & Lease up
        • Asset Managers TechStack
        • Accounting & Reporting
        • Brands & URLs for sale
        • ESG Consultancy & Implementation
        • UK Build to Rent
        • UK Later Living
        • UK Coliving
        • UK Student Housing
        • BTR Smart PropTech
        • BTR Strategic Marketing
        • BTR Resident Experience
        • BTR Tenancy Management
        • Asset Management Clients
        • Site Finding/Digital Land Search
      • Law
        • Legal Services Overview
        • Our People
        • Recommendations
        • Right to Manage
        • Lease Extensions
        • Freehold Purchase
        • Absentee Freeholder
        • Court Appointed Manager
        • Conveyancing
        • Service Charge/Rent Arrears Recovery
        • Company Secretary
      • Valuation
        • Valuation Overview
        • Loan Security
        • Company Accounts
        • Lease Extensions
        • Freehold Purchase
        • Rent Reviews
        • Development Valuations
        • Insurance Valuations
        • Expert Witness & Litigation
        • Tax, Trusts & Accounts Valuations
        • Trading Business
        • Compulsory Purchase
        • Residential Valuations
      • Engineering
        • Engineering Overview
        • EWS1 Consultancy
        • Asbestos
        • Contract Administration
        • Fire Assesment
        • Homebuyer Survey
        • Building Survey
        • Schedules
        • Party Wall Matters
        • Principle Designer
        • Disability Access Audits
        • Small Building Works
      • Finance
        • Finance Overview
        • Get Accounts Quote
        • The Law & Property Accounts
        • Industry Update
        • To audit or Not?
      • Plant & Facilities Management
        • Plant & Facilities Management
        • Fire Door Inspection APP
      • Site Staffing Solutions
      • Leasehold Guidance
        • Leasehold Guidance Overview
        • Right to Manage
        • Buy Freehold
        • Court Appointed Manager
        • Absentee Freeholder
    • Insights
      Property Management Articles Property Management Blogs Rental Market Blogs Customer Comments FAQ - Ask Our Experts
    • E-books
    • Portal Login
    • Get In Touch
    • Clear Filter
    • Property Blog INDEX
    • PlanetRent Blog

    Three cheers for Help to Buy but don't forget to do your homework first


    Responsive image



    A new flat could be yours with a small deposit via Help to Buy - but do read the small print.


    There was good news this week for anyone hoping to buy their first flat via the Government?s Help to Buy scheme. A new and improved offer will run from 2021 to 2023, with some new safeguards written in. Builders must now sign up to the Building Safety Charter (when it?s launched) if they are selling homes under Help to Buy in blocks above 18 metres - or 6 floors, whichever is lower. And any ground rent on the sale of leasehold properties through the scheme must be restricted to a peppercorn rent.

    The Government-funded scheme allows buyers to purchase a new-build home with a 5% deposit plus an equity loan from the government and a mortgage for the remaining balance. The scheme includes regional property price caps. The caps take average first-time buyer prices for the region (inflated to account for property price growth) and add a further 50% to ensure there is good availability of the scheme.

    Since it was originally rolled out in 2013, it has helped more than 200,000 home buyers, but it?s also faced accusations of inflating house prices and lining developers? pockets. The Government seems to have taken these criticisms on board. For starters, it will be restricted to first-time buyers. Now, defined in line with stamp duty land tax exemption, the scheme will only be applicable to people who have never owned a property before. All buyers will be entitled to view the actual home being purchased (with their own surveyor if desired) before legal completion of the sale.

    Developers who want to use the Help to Buy scheme must now sign up to a range of new quality measures to improve consumer experience and safety. As we blogged yesterday, builders must be subject to adjudication provided by the New Homes Ombudsman and the preceding voluntary scheme (when established). Those housebuilders with a Home Builders Federation star rating must show it clearly on all Help to Buy-related communication and advertising and all homes built from May onwards must comply with the most recent energy efficiency requirements.

    Despite all this, there is still a strong element of Caveat emptor or buyer beware, about this initiative. It's been really helpful for people who otherwise could never have afforded to make the move from renting to buying. But the way the equity stake from the Government works is complicated and despite getting a 5-year interest free period, after that monthly payments will go up. You can only buy selected properties from certain developers and get a mortgage from selected lenders - and any profit you make when you sell your flat will be shared with the Government; they will take back 40% of the sale.

    So the message here is that potential buyers really can benefit from the scheme - which does look better this time round. But they do need to go into Help to Buy with their eyes open - and do their homework.



    03/09/2020
    Author : Mary-Anne Bowring

    Social
    Facebook Linkedin Twitter Blogger

    Subscription

    Keep up to date

    (Weekly, fortnightly or monthly)


    To find out more what we do with your data, please read our Privacy Policy


    Insights, Blogs, Research, E-Books

    Landlord blog bg

    Landlord blog
    Read landlord blog
    Property blog bg

    Property blogs
    Read property blogs
    Articles bg

    Property articles
    Read property articles
    E book

    E-books
    Read E-books
    Facebook footer Instagram footer Linkedin footer Twitter footer
    Facebook footer
    Instagram footer
    Linkedin footer
    Twitter footer
    • Ringley Group
    • About us
    • CSR
    • BusyLiving
    • PlanetRent
    • Fire door inspection
    • Talk to us
    • Careers
    • Ask a Question
    • Insight
    • Articles
    • Blogs
    • Subscribe
    • What we do
    • Asset Management
    • Block Management
    • Facilities Management
    • Property Law
    • Surveying / Valuation
    • Building Engineering
    • Financial Services
    • Managing Agents
    • Block Management Locations
    • Co-working
    • Offices
    • London
    • Ringley House
    • 1 Castle Road
    • London
    • NW1 8PR
    • T: 0207 267 2900
    • Manchester
    • 11 Swan Street
    • Northern Quarter
    • Manchester
    • M4 5JJ
    • T: 0330 174 7777
    • Cardiff
    • 122 Bute Street
    • Cardiff Bay
    • Cardiff
    • CF10 5AE
    • T: 0330 174 7747
    • Email: solutions@ringley.co.uk
    • Emergency line 1: 0207 428 2056
    • Emergency line 2: 0207 267 2900
    • Report incident
    Privacy Policy
    Ringley Staff
    Ifsm Irpm member New iso Arla licensed Ombudsman services Rics vertical Gbc

    All content © copyright 2022. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
    Terms of use | Privacy Policy | Modern slavery act | COVID-19 risk assessment