Now we have had time to digest last weeks election result, here is a basic overview of what this means to the Property Industry and for home buyers.
With a Conservative majority here are the policies we will have;
–Help to Buy
There are two types of Help to Buy, one being a guarantee to mortgage lenders for what is classed as higher risk purchasers with a 5% deposit.
There is also the Help to Buy equity loan. This is for new build properties; the government will loan 20% of the value, meaning purchasers can have a 5% deposit with a 75% mortgage.
–Help to Buy ISA
This is due to start later in the year, first time buyers can apply for a Help to Buy ISA where for every £200 saved the government will put £50 towards your savings with a maximum saving of £15,000.
-Right to Buy
Council tenants can apply to buy their home if they have lived within council properties for 5 consecutive years. Right to Buy offers the houses at a discounted rate. In the run up to the election the Tories explained how they want to extend Right to Buy to community housing residents.
The Conservatives have pledged to build 200,000 new starter homes for first time buyers with an additional 275,000 additional homes.
With the election result here is what we won’t have;
-Mansion Tax, an annual fee on properties over 2 million (Labour and Lib. Dem.)
-Rent to Own, first time buyers can rent to build up their share meaning they do not need a deposit. (Lib. Dem.)
-3 year tenancies in the private rental sector. (Labour)
-Stamp duty removed on Properties Under £250,000 (UKIP)
-Abolishment of Right to Buy (Green)
-Abolishment of Bedroom Tax (SNP)