Chancellor George Osborne delivered his budget for the coming year and as expected helping the housing and property market was an important subject.
The Chancellor announced a raft of changes which will help increase lending, build more homes and continue the housing market boost.
Help To Buy: Equity Loan – Extended
The Help to Buy equity loan scheme will be extended for another decade after it’s initial ability to help boost house prices across the UK.
Under the equity loan scheme a borrower can apply for a loan from the government to help them pay a percentage of the deposit for a property.
The latest statistics from the government show in the 10 months to January 2014 there were 14,823 properties purchased used the equity loan scheme.
However there have been fears the Help to Buy scheme is creating a housing bubble with a sharp rise in prices since it was launched.
There are two parts to the Help to Buy scheme, equity loan and mortgage guarantee, both were due to end in 2016 and the later wasn’t mentioned in the budget. The mortgage guarantee scheme will still finish in 2016 as planned unless it’s extended before then.
New House Builds
The government will begin building over 15,000 homes in London and the south east of England including a new garden city in Ebbsfleet, Kent.
There will also be a £500 million fund for small house building companies along with a £150m fund through a new “Right to Build” scheme.
The Right to Build scheme will be available to people who wish to build their own property and can meet any requirements necessary.
How to Benefit from Budget 2014
The message from the Chancellor was clear, this was a budget which was aimed at getting people working, businesses producing and the housing market moving.
Whether you want to build your own home or you need help getting a mortgage, the 2014 budget could give the housing market a much need boost.
If you’re interested applying for the Help to Buy scheme or you need help getting a mortgage, speak to one of our mortgage experts today.