insideKENT Magazine Issue 31 - October 2014 | Page 152

PROPERTY Help to Buy Scheme picks up pace With today’s increasing property market and the re-emergence of developers in the local area, it seems that the government’s Help to Buy Scheme, which was introduced last year, has now begun picking up pace with many purchasers (both first time and otherwise) opting to take advantage of the scheme. The Help to Buy Scheme offers two options to purchasers, these being: Equity Loan – The government will loan an additional 20% of the purchase price over a period of 25 years (interest free for the first five years), and subject to eligibility. You will be pleased to know that the conveyancing team at leading South East law firm, Girlings, has the relevant experience and knowledge to be able to assist with your equity loan or mortgage guarantee on any purchase. If you require any further information in relation to the scheme, contact Kacy Ford at [email protected]. www.girlings.com Mortgage Guarantee – The government will act as a guarantor for up to 15% of your loan, whereby you already have a minimum of 5% deposit available. Kacy Ford, Girlings South East Housing market 'pauses for breath' The South East residential market took a bit of a breather this summer, with demand for new homes falling slightly, supply still historically low, and prices rising at a more moderate pace, according to the July RICS Residential Market Survey. In line with more member caution reflected in some of the comments, prices in the South East are now expected to rise by 2.7% over the next year – a decrease from the 12month prediction of 4.5% in May and 6.3% in March. However, this is still higher than the national picture, whereby prices are expected to increase by 2.6% on a 12-month view (compared with around 4% at the start of the year). In the region, 4% more chartered surveyors noted a rise in new buyer enquiries by mid-summer, down from a net balance of +33% in January. Supply is also still historically low, although with 4% more chartered surveyors seeing a fall in new instructions, this is an improvement from a net balance of -15% in January. Prices in the region are still rising, but at a more moderate pace, with 58% more respondents seeing a rise by mid-summer, compared with a net balance of +80% in January. The same can be seen with price expectations in the coming months, with 30% more chartered surveyors predicting rises compared to 59% more predicting a rise in January 2014. As the regions housing market takes a breather, average stock per chartered surveyor in the region are at 29, down from 40 at the same time last year and newly agreed sales are declining. In London, both sales and new buyer demand fell more sharply than elsewhere, with enquiries falling at their fastest rate since April 2008, and a net balance of 10% more respondents reporting an increase in prices. Across the UK as a whole, sales expectations remain positive at both the three and twelve month time horizons, albeit a little less so than previously. market has been particularly pronounced, but that is in a sense consistent with the move to a more sustainable market in the capital. "Elsewhere around the country, the market in general is showing a greater degree of resilience, but that largely reflects the fact that in some areas the recovery has only recently taken hold and affordability is rather less stretched. Significantly, members now expect price gains over the next year to be faster outside of London, than in it.” Simon Rubinsohn, RICS chief economist, said: “A range of policy initiatives adopted by the Bank of England in recent months alongside heightened expectations surrounding a turn in the interest rate cycle has clearly had an impact on sentiment in the market. The shift in the mood music amongst potential buyers in the London www.rics.org/uk 152