- Mon 29 Jun 2015
Rarely has a Government backed housing scheme boosted new homes sales to a significant degree as the introduction of Help to Buy introduced in 2013.
Bradleys Estate Agents who specialise in selling new homes in Somerset, Devon and Cornwall have witnessed the startling effects of Help to Buy in the South West generally.
To put this success into perspective, Bradleys estimate that over 1,000 South West purchasers would not be the proud owners of a new home without this scheme being in operation. National statistics back this up with just short of 100,000 buyers taking up the scheme since it’s commencement in 2013. Interestingly, 95% of completions using Help to Buy have taken place outside of London and it has therefore been a sales rooted in the provinces.
Chris Baxter from Bradleys Land and New Homes explains: “for a buyer or buyers purchasing a typical £200,000 home, a £50,000 deposit would normally be required to fund the purchase. This is a large amount of money for any buyer to have saved but with Help to Buy this initial requirement reduces to just £10,000 which, quite rightly, has attracted a far larger volume of buying interest, especially as the scheme is open to all potential home buyers, not just first time buyers”.
Cynics have suggested the Help to Buy scheme would lead to house prices rising faster than normal however, Bradleys Estate Agents explain that since its inception in 2013 their own South West house price index suggests no acceleration in house price values over and above the norm.
A typical example of how Help to Buy has transformed the market place can be seen at Webbers Meadow, Woodbury, where Stevens Homes, in a joint venture with Devon and Cornwall Housing Association, have created 17 open market homes in this sought after area where prices are generally more expensive. Take up of the Help to Buy scheme for the open market homes has been above 40% and has allowed many first time buyers living locally to remain in the area and not having to seek a property in a cheaper more distant location.
A similar picture can be seen at Emerge – an exciting development in the regeneration area of Plymouth, which is being built and developed by Linden Homes. This site has been viewed as an excellent investment opportunity for investors and first time buyers. The impact of Help to Buy on the development, where the first home has yet to be built shows a staggering 80%+ of buyers opting for Help to Buy, The sales progress for off plan reservations has been swift at this location with over 60 more new homes in the pipeline.
Over the boundary, into Cornwall, “The Village” at Quintrell Downs being developed by Kier Living and Devon and Cornwall Housing Association has again witnessed a steady take up of Help to Buy in over 60% of all housing transactions.
With Help to Buy as a scheme expecetd to continue to 2020 this trend is set to continue into the future, helping buyers in the South West to realise their home owing dreams.
Details of developments with Help to Buy schemes can be gained from Bradleys Land and New Homes department on 01395 223336.
Bradleys Land & New Homes Director