Estate agents say: Help to Buy's new phase will boost sales


Mortgages of up to £600,000 will now be offered to borrowers in the second phase of the Help to Buy initiative. The aim to help both existing and first time homebuyers in buying a home, with only a 5% deposit, put down as well as taxpayers back the mortgages. Of note, is that more than three-quarters of those applying for the loan are those wishing to be first time homeowners. The deal is partly (15%) guaranteed by the Government, thus allowing it to be a cheaper option.

With these numbers in mind, most real estate agents believe that property sales are set to increase with this initiative. Even agents like Knight Frank are referring to it as “A new start for the UK housing market”. A recent report by Knight Frank read, “Some 15,410 buyers have already used the loan to augment their deposits for a new-build home”. This number is set to rise in the coming days. With an expected boom in property sales, the next question would be where to buy. Properties in London, whose property value tops the list, with an average property value of £510,457 according to Zoopla, are still within reach with the help of the Government initiative.

Islington, North London, offers properties within reach. The average home in Islington costs about £585,000 implying that one can afford a home with a deposit of about £29,250. However, properties in Islington are more expensive than in other areas, such as Bethnal Green. For about £590,000, you are likely to get a two-bedroom unit, while this is more than enough for a three-bedroom unit in Bethnal Green.

Bethnal Green estate agents offer multiple residential properties that would fit well in the Help to Buy range. Flats in Bethnal Green have an average cost of about £512,000, with studios going for about £230,000 and six bedroom houses going for almost £900,000. Any property with three bedrooms or less would also suit one with a Help to Buy mortgage. Estate agents in Bethnal Green would succeed in pushing the three-bedroom units than they would with the most expensive, five-bedroom home, which has an average cost of about £1.2 Million, well above the Help to Buy range. Bethnal Green estate agents Columbia Rentals Ltd. and Jameson Knight have the highest valued properties, with an average cost greater than the required £600,000 for a Help to Buy mortgage. However, the other agents in Bethnal Green have an average property value of about £400,000 and below.

If you consider yourself edgy and artistic, then there is even a far better deal in Shoreditch. Shoreditch has festivals and markets that do not close, year round. Estate agents in Shoreditch offer properties that have an average property value of about £509,000. For £541,200, one can invest in a three bedroom home.

With the expected increase of people wanting to own a home, property value has been forecast to increase. This increase however, is not expected to reflect in the rent rates. In the end, it all comes down to the location of the property. £300,000 in Shoreditch can get you a two-bedroom flat on Hunton Street, while you require £380,000 for a one -bedroom flat on Murray Grove.