UK Government Introduces ‘Help to Buy’ Mortgage Scheme

Source: Alan Cleaver

In another effort to help people buy houses (and boost the economy), Chancellor George Osborne recently announced an extension of current mortgage guarantee schemes FirstBuy and NewBuy, during the 2013 Budget Speech. Here’s a quick recap of the ‘Help to Buy’ scheme.

‘Help to buy’

Taking effect in April 2013, the three-year ‘help to buy’ scheme basically comprises of two parts: government will offer buyers of newly built home equity loans of up to 20% of the property’s value. These loans would be repayable once the property is sold and, according to the Financial Times Advisor, government will allow lenders to determine their own interest rates on the loans.

The second leg of the scheme is that Government will provide ‘mortgage guarantees’ to incentivise lenders to make loans available to buyers with small deposits.

Edinburgh’s Haymarket to Benefit from Mixed-use Development

Source: Richard Webb

Interserve, an international support and construction group, has won the contract to develop a mixed-use shopping mall in Edinburgh’s Haymarket area.

The Haymarket area in Edinburgh is listed as one of the city’s last remaining gap sites and the proposed £200m development is set to rejuvenate the area.

It’s an Interserve/ Tiger Developments partnership

Interserve will construct £150m of building work; creating offices, shops, a hotel, an underground parking garage and leisure facilities. The company must be stocking up on overalls for men as its teams prepare to break ground on the project.

CEO of Interserve, Adrian Rose believes that: “Our involvement and financial commitment to this project underlines Interserve’s ability in creating value by structuring asset-based funding in combination with the design and delivery of large scale projects.”

Tiger Development has signed on the handle the project’s marketing and development in co-operation with Interserve.

Property Development Firm Plans 600 New Homes for Devon

As the UK moves towards making it easier for first time buyers to get into the property market, a property development firm, Barratt Developments, are working with David Wilson Homes to construct 600 new homes in the Devon area. Not only will the development provide new lost cost housing, but it will also provide at least 1,000 new jobs for employment during these difficult financial times.

Planning

Barratt Group Chief, Mark Clare, has unveiled seven new property development undertakings in Exeter, Ermington, Newton Abbot and Plymouth. New-build housing shortages, particularly in the Exeter area, have been a problem in the past but this new project means more housing and more buyers. Mortgages are currently easier to apply for and people want to get into the residential property development market before 2014 brings more defined restrictions on mortgage applications.

The Difficulty in Purchasing Property is Going to Escalate in 2014

As of 2014 it will become more challenging for people to get mortgages. Since the government has introduced a buying scheme for first-time buyers who were finding it unnecessarily difficult when purchasing property, there have many different mortgage options to choose from. It can be excruciating trying to find the right mortgage for you, and there are all the requirements to meet, which is making it much harder for people to be approved.

Mortgages

Self-employed property purchasers may find themselves particularly affected by these new restrictions, which means so many more people are purchasing property through shared ownership. Shared ownership properties are great options for first-time buyers who cannot get approved for full mortgages, or afford the full repayments.

Home of Kensington Roof Gardens on Sale for £200 Million

The building that is home to Richard Branson’s famous Roof Gardens restaurant in Kensington, is up for sale. The asking price for this five-star location is a cool £200 million. Kensington Roof Gardens has entertained many famous artists, musicians, actors, models and politicians from all four corners of the globe, so there are many questions about whether Branson will be able to renew the lease for his restaurant, which is a hot-spot for New Year’s Eve celebrations, and celebrity parties.

A Landmark

Spread across 1.5 acres on the top of the old famous art deco department store, Derry & Toms, the Roof Gardens is considered one of the most glamorous entertainment venues in England. Thanks to some serious flat roofing contractors when the building was originally constructed. The Kensington Roof Gardens have a stunning array of fruit trees, a fish-filled stream, and a flock of beautiful pink flamingos that stand around in a well-maintained pond.

First Time Buyers reach Highest Rate Since 2006

Last year saw a rise in the number of first time buyers, which has reached its highest point since the financial crash of 2007. According to a study of the UK market by Halifax, 216,000 people purchased a first home in 2012, which is encouraging when one considers the disastrous effects of the credit crunch over the past five years. This is partly due to the introduction of more affordable mortgage rates and the assistance of government schemes for shared ownership properties.

Buy-to-Let Landlords looking Forward to the New Year

Earlier this month, the Council of Mortgage Lenders revealed that landlord loans for buy-to-let properties had reached and all-time high as rising house prices and low interest rates prompt more Britons to invest in rental properties. According to another, more recent survey, these buy-to-let landlords can expect another lucrative year ahead in 2013.

Rents Set to Rise

A study by LSL Property Services has shown that while 39% of landlord insurance holders expect to increase their rents by an average of 4.6%, while 10% of those polled are planning a rise of more than 5%, and only 1% of these landlords are planning to reduce their rental rates. With so many tenants currently competing for shared ownership property, buy-to-let landlords have found themselves in a position where they can afford to keep their asking prices high, and be more particular about the tenants they choose.