By now everybody will be aware of the potential impact from the ban on lettings agents fees, however, I thought I should bring to your attention the other parts from the statement that will affect the property market.
Firstly, £3.15billion is being set aside for 90,000 new homes in London. This is the highest figure ever secured for housing in the capital that is felt will have a gentle impact rather than causing a massive change. The London mayor has said the money will be used for below market rents for low income Londoners together with homes that will rent, set at no more than a 1/3 of the average local income for middle income earners. There will also be more shared ownership homes to help Londoners who want to buy but cannot afford the open market value.
Secondly, £1.4billion has been set aside to deliver 40,000 affordable homes. Currently there is little or no detail as to how this will work, however, it is felt that this will target the first time buyers who have been struggling to save deposits large enough to make their first purchase. Shared Ownership and Help to Buy are a great way for new buyers to get on the property ladder – buyers only need to provide 5% deposit, and obtain a 45% mortgage which we can help you find through our financial advisors. The remaining share will be bought by the Housing Association which you can then go on to purchase from them at a later date through ‘scaffolding’.
Thirdly, £2.3billion housing infrastructure fund is being launched which is intended to help provide 100,000 new homes in high demand areas.
Finally, there was no reversal of stamp duty charges for 2nd properties or on cuts to mortgage tax relief. Some people are arguing that this could be good news for first time buyers as it reduces competition in the starter home market, however, others have argued that this could lead to fewer rental properties coming to the market which our growing population requires and can only lead to pressures on the rents. Only time will tell. Goodfellows understand the local property market and are best positioned to advise you and help you when you’re looking to buy, sell or rent – give us a call or pop in and have a chat.