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Green Shoots of Recovery in the Housing Market?

Our residential property department can say a definite "yes" if an increase in instructions is an indicator.

All of our offices have noticed an increase in the number of instructions, across the board price-wise. It is also true however that part of the increase in instructions is down to our pricing structures; offering clients the option of no-risk (to the client) fixed fees or calculating fees based on the time a matter takes (an option if the client considers that the matter is simple and can be completed in less time that the average). We also believe that our level of service (confirmed by our client satisfaction surveys) has a lot to add to the increased confidence in clients asking us to deal with what is, for the majority of us, the most important financial transaction we make. 
 
On the new homes front, it does seem that more and more builders are signing up to the Government’s Help to Buy Scheme and our offices in Shrewsbury and Telford are both seeing transactions going through on that basis. The Help to Buy Scheme is an equity loan and is open to both first-time buyers and home movers on new-build homes worth up to £600,000. You won’t be able to sub-let your home if you use this scheme.

With a Help to Buy equity loan:

  • you’ll need to contribute at least 5% of the property price as a deposit
  • the Government will give you a loan for up to 20% of the price
  • you’ll need a mortgage of up to 75% to cover the rest

An agent is appointed to manage the Scheme (see http://www.helptobuy.org.uk/find-your-local-help-to-buy-agent/) and your Help to Buy agent will contact you before the end of the fifth year, to set up monthly payments with your bank, and thereafter you will  be sent an annual statement.

If you have any questions about buying a property under this scheme you should contact Carolyn Burgoyne on 01952 211045 or on carolyn.burgoyne@lblaw.co.uk.