29 October 2013, With the Government announcing this week that they are bringing forward the launch of the second phase of the Help to Buy scheme, which is aimed at helping first time buyers get on the property ladder by guaranteeing 15 per cent of a mortgage, meaning buyers only need to put up 5 per cent of a property’s value of existing properties worth up to £600,000, we look at what this means for the property market.

Confidence in the UK housing market and in property values is a positive economic indicator that governments of recent times have been keen to foster.  Any action by the present administration to support the current levels of confidence is to be welcomed.

Concerns that the bringing forward of the launch of the second phase will over-fuel house prices and create a bubble should be tempered by the fact that now, the Bank of England’s Finance Policy Committee is charged with reviewing the impact of the Help to Buy scheme on an annual basis – as opposed to its previous position of review only after three years.

My New Homes’ colleagues have reported how the first phase of Help to Buy, which was launched earlier in the year to support people buying new build houses for the first time, has had an impact on their markets, with first time buyers overjoyed to finally be able to afford their first new home and stop renting or move out from the family home.

Supply of residential property in Northampton itself and the rest of the county is tight.  It is being driven by downsizers and investors, so the bottom of the ladder isn't moving.  There are buyers out there waiting for the right properties in the right locations, and others who are desperate to get their foot on the rung of the ladder.  The rental market is hot, filled with people working hard to save for a deposit.  For the property market to balance itself out, we need all rungs of the ladder to be in place, and this move by the Government, which thankfully will be kept under review, should help to ensure that we have a balanced market of not just downsizers and investors, but first time buyers too.  It will keep the property market moving and bring a controlled boost to housing market confidence.

We are forecasting that this autumn is poised to be the most active season for house purchasers and sellers since the mid years of the last decade.  To speak to us about buying or selling your home or how Help To Buy Phases 1 and 2 can benefit you, please call Carter Jonas’ Northampton office on 01604 608 200.