How is Housing Being Made More Affordable in 2017?
House prices have been rising steadily over the last few years, which has led to some trepidation for home buyers, in particular, first-time buyers. However, 2017 could mark a change, with housing becoming more affordable.
A number of schemes have been introduced and are set to continue in 2017, which is understandably creating some interest.
The Starter Homes Scheme
The scheme, which was first announced in 2014 by the coalition government, is finally set to become a reality in 2017 with the construction of the first ‘Starter Homes’. After three years of silence, the government has identified 30 areas across the UK, which will receive £1.2 billion of funding from the Starter Homes Land Fund.
Starter Homes is an initiative that aims to provide 200,000 discounted new-build homes to first-time buyers in England by 2020. Qualifying buyers will be able to benefit from a minimum 20% discount on the cost of a new home. That means buyers will only need a mortgage of 80% on the true sale value of the home – minus the deposit required by the lender.
To qualify for the scheme, prospective homeowners must be aged between 23 and 40 and buying a property for the first time. The maximum cost of a home offered via the Starter Homes scheme will be £250,000 outside London and £450,000 in the capital.
Whilst only 30 local authorities across England have been selected to spearhead the scheme, the UK’s housing market eagerly awaits a nationwide rollout.
Help to Buy Shared Equity Scheme
Another scheme that will continue to make housing more affordable in 2017 is the Help to Buy Shared Equity Scheme. Designed to make getting on the housing ladder more accessible, the scheme means that the government will provide up to 20% of the purchase price, with the buyer only then needing to contribute a further 5%.
The scheme is set to continue into 2017, allowing more opportunities for buyers to make their first or next step onto the housing ladder.
To discuss affordable housing and mortgage options with the team at the Mortgage Centres, get in touch with our expert advisers today.