130bn scheme an 'adrenaline shot' for home buying
Mon 07 Oct 2013
The second phase of the government's Help to Buy scheme will inject a 'shot of adrenaline' into the housing market when it launches today, estate agents have said.
Help to Buy 2 has been brought forward from January and will allow lenders who want to offer 95 per cent mortgages to buy a guarantee from the government for up to 15 per cent of the loan.
By sharing the risk, the 130 billion scheme should be a boost for first-time buyers, with deposits as low as 10,000 in six out of ten regions in England and Wales.
"Bringing forward the scheme will help to stimulate the UK housing market over the short term like a shot of adrenaline," said Peter Rollings, CEO of Marsh & Parsons.
'Outside London, the market desperately needs this impetus as prices have risen anaemically for some time but in real terms they havent risen for a number of years.'
Mr Rollings said the capital need the stimulus 'to free up mid-ladder buyers who want to become first-time sellers' and resolve supply and demand issues.
Meanwhile, home sales in Britain reached a four-year high last month, figures from the Royal Institution of Chartered Surveyors show.
'It's encouraging that the market is starting to improve in all parts of the country, with more buyers looking to make a move and more sales going through,' said Rics director, Peter Bolton King.