Buy Association – How HTB is Affecting London
Due to the layout of the Help to Buy scheme, its influence on London’s house prices has been noticeable, a new research explains.
Buyers who use the scheme to afford a house can purchase property for up to £600,000, which means there is an awful lot of demand for houses just under that threshold across the city.
James Pendleton has put together a research that has now revealed that 83% of new built properties sold for prices between £575,000 and £625,000 across seven of London’s boroughs have sold for just under £600,000.
The research found that 380 properties (the report overall focused on Battersea, Putney, Tooting, Balham, Wandsworth, Clapham and Brixton) were sold for anything between £575,000 and £600,000 over the last 12 months. Only 183 properties were sold for a prices between £600,001 and £625,000.
The Help to Buy scheme allows the Government to lend up to 20% (or 40% f you’re looking in the capital) to buyers so they can afford a deposit. All they need to do is purchase a new built home.
The scheme doesn’t include any regulations when it comes to the size of a home, which led to developers buildings especially well-sized properties for just under £600,000.