If you’re struggling to scratch together the deposit to buy a home in Wales, then the Help To Buy scheme could be the assistance that you need. The new government regulation offers thousands of people across Wales the chance to own something that you can really call home.

What exactly is it? How does it affect people in Wales? 

What is the Help To Buy scheme?

Help To Buy consists of two separate initiatives which aim to make it easier for people to buy their own home. The two parts both present different ways for people with small deposits to find a mortgage in Wales. Those two parts are:

•    UK Mortgage Guarantee Scheme

•    Help To Buy Wales

The UK Mortgage Guarantee Scheme

Available for all properties across the UK up to a value of £600,000, this government initiative allows any first-time buyer or homeowner in the UK arrange a mortgage with a lender with a deposit of just 5%.  More...

In recent months, a new breed of firm has emerged which take a new twist on a burgeoning trend. Much like more established companies which offer to buy any vehicle, these online start-ups promise to buy any home for up to 90 per cent of their value. The lure for many house sellers is the transaction can be completed in just a matter of weeks.

If you’re in need of cash quickly, firms such as Webuyanyhouse.co.uk, Quickbuyers.co.uk and Housebuyerbureau.co.uk offer to buy your property so you can achieve a quick sale. However, vulnerable homeowners are being warned that in many cases homeowners are offered just a fraction of the property’s real value and end up tens of thousands of pounds out of pocket.

Peter Bolton King, a spokesman for the Royal Institution of Chartered Surveyors, was quick to voice his concerns about the new firms: “Homeowners looking for a quick sale are vulnerable by definition and are prime targets for quick sale property websites. Homeowners should know they are unlikely to be offered the value they had hoped for”. More...

Mark Hobbs, Managing Partner of Howells Solicitors is very critical of the announcement by the Welsh Government yesterday to scrap ‘New Buy Cymru’ just weeks before its scheduled launch.

Designed to assist first time buyers by giving them access to a 20% interest free loan for the purchase of a new property, New Buy Cymru’ was going to be similar to the ‘Help to Buy’ scheme announced in the recent budget by the UK Government.  

Following the announcement of the scheme it was widely praised as a measure to further kick start the construction part of the economy and at the same time to help younger purchasers get on to the housing ladder.

Mark said, “I think it has been widely acknowledged that any scheme that assists young first time buyers onto the housing ladder is sensible and aside from the social consequences there is also the impact that this has upon the wider economy. Following the about turn by Welsh Government we now have the ludicrous situation that buyers of new build properties just 20 miles or so away on the English border can gain the support of the English scheme but no one in Wales will.   This seems to be grossly unfair on the population of Wales and represents a missed opportunity in kick starting the economy and encouraging construction and the creation of jobs.”

He continued, “Howells experience suggests there is significant pent up demand in the first time buyer market and that the implementation of a scheme such as ‘New Buy Cymru’ would be successful and popular and would result in Wales being treated no less favourably than England.   I do hope, that the Welsh Government will look again at this concept and realise that the decision made is not in the best interest of the Welsh people and consider reinstating the original proposal”.

by Tristan Lewis

Commenting on the survey released by the Nationwide Building Society today, Mark Hobbs, Managing Partner at Howells Solicitors, remains positive despite the reported fall in house prices.

Mark says, “Although there has been a fall in house prices in Wales, people are still moving and first time buyers are continuing to enter the market. Across our five south Wales offices, there has been an increase of 47% in the number of enquiries and completed transactions in November and December 2011 compared to the same months in 2011.”

This increase in activity correlates with the positive figures released in December by the Financial Services Authority and the Council of Mortgage Lenders indicating that lending to home buyers has gone up over the past few months. 

They reported that loans to first-time buyers in October increased by 14% compared to September and 19% compared to the same time last year.

Mr Hobbs continued, “There is a plethora of different opinions regarding the current state of the housing market and what might happen in 2013. Our own figures indicate that the conveyancing side of the housing market has been buoyant and the New Build market has contributed to this. Mr Hobbs explained, “We are one of the preferred conveyancers for five of the leading housebuilders in South Wales. There is certainly some optimism creeping back into this market, and it is encouraging to see an increase in potential buyers across parts of the country where the market has particularly suffered in recent years. That said, there is still a long way to go.”

by Tristan Lewis

Most prospective new home owners who are in a position to purchase property for more than £125,000.00 will know that the single largest expenditure they will incur is Stamp Duty Land Tax.

For some home buyers there is therefore a temptation to try and reduce the extent of the tax. One of the main Stamp Duty avoidance tricks is to try paying for fixtures and fittings separately. In so doing however extreme caution should be exercised as the transaction could be challenged by HM Revenue and Customs who are keen to get their hands on all of the monies that the Revenue is entitled to! More...