'Softer house prices will have a restorative effect on the London property market long term'

    Lucy Pendleton

City AMHelp to Buy scheme is distorting the housing market

The Help to Buy housing scheme is distorting London’s housing market due to the scheme’s threshold level.

The top price buyers can purchase a house on the scheme for is £600,000, meaning there is a lot of demand for properties just under this price in the capital.

Research by James Pendleton has found that 83 per cent of new build properties sold between £575,000 and £625,000 in seven areas of the capital sold for just less than £600,000 threshold.

The study focused on properties sold in Battersea, Putney, Tooting, Balham, Wandsworth, Clapham and Brixton in the last year.

It found 380 properties across these areas were sold in the £575,000 to £600,000 price bracket over the past year, whereas just 183 properties were sold in the £600,000 to £625,000 bracket.

Through the Help To Buy equity loan scheme, the government lends up to 20 per cent of the purchase price (and up to 40 per cent in London) so buyers don’t need to save for as much of a deposit when they are searching to a new build home.

The London plan places minimum limits on the size of homes developers can build, leading to developers building relatively well-sized properties under this £600,000 price level.

City AM
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Help to Buy
Lucy Pendleton to give insight into the recent November 2017 House Price Index.
James Pendleton is an amazing company. They have been a big part of me winning a bronze medal in Rio 2016 and have been so supportive with all my achievements, which wouldn't have been possible without them. They have given me so many opportunities, I am privileged to be associated with such fantastic people who give so much back to the local community.

Having recently rented my property through James Pendelton, I can't recommend them highly enough. They walked me through the process and found me amazing tenants. From the first contact they were professional and informative. Thank you to Jacob, you were amazing. Thank you also to the Angel Department who, after realising I needed safely certificates, sorted everything out for me and made sure I had everything in order.


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