No matter what issue arises in the property market, it is likely that there will be at least two sides to every story. It was recently reported that the Help To Buy scheme has supported an average of 1,000 sales of new-build property a week in 2018, with most of these sales being concluded by first-time buyers.
There is no denying that helping first-time buyers get on to the property ladder is important. In this regard, many people will view the scheme to be a success. There is also the fact that a property developer Persimmon has announced record profits, with Help To Buy has helped the company achieve this aim. For some, this is a positive sign but there will also be many people concerned that it is developers who are benefitting from newcomers to the property market while existing homeowners struggle to sell their property.
NAEA have concerns about Help To Buy
This is a viewpoint being put forward by the NAEA who believe the Help To Buy scheme distorts the property market, removing first-time buyers from the housing market and system.
NAEA chief executive Mark Hayward spoke to EYE and said; “We are seeing increased sales to first-time buyers running at about 26% of sales, with the slowdown in buy-to-let purchases helping the first-time buyer to be in a more competitive position. Help to Buy, though, does not build chains as in effect the buyer is sucked out of the system.”
There was also a very strong response made by property market specialist Henry Pryor who took to Twitter to vent his opinions about the system and the profits made by the property developer. Pryor began by referencing the fact that 1,000 children the country were living in B&B accommodation and then said; “and government persists with a scheme that directly supports a company making £1bn profits . . . Am I cross? I’m f****** outraged”.
Existing homeowners need support in selling their home
With so much of the focus for the Help To Buy scheme falling on new-build property, there isn’t the same movement in the marketplace as would happen if first-time buyers were receiving support to buy already available property. There is an accepted need for more property in the UK, so there should be more homes being built but it is important to not make new homes so appealing and affordable that current homeowners struggle to sell their property. There has to be a balance and it is easy to see why so many property market specialists have voiced concerns about the huge profits being earned by a housing developer.
As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html