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Good news for first time buyers in the Chancellor’s Autumn Statement First-time buyers will be able to get a 20% discount on 200,000 new Starter Homes
the deposit, so you can’t use it to pay your solicitor’s, estate agent’s fees or any other costs associated with buying a home.
Starter Homes are new build homes available at 20% off the market price. They are only open to first-time buyers under 40. £2.3 billion will be spent on building 200,000 Starter Homes over the next five years. This money will be given to house builders to provide a 20% discount on new homes. House builders can now apply to make their developments Starter Homes.
When you are ready to purchase your first home your solicitor or conveyancer will apply for your bonus When you find your home, your mortgage provider will ask you to hire a solicitor or conveyancer. They handle all of the legal aspects of buying your home. When you are close to finishing your home purchase, you will need to ask your bank or building society to close your Help to Buy: ISA. Don’t just withdraw all of your money - let your bank or building society know that you are closing your account and they will give you a closing letter. You will need to take this letter to your solicitor or conveyancer so that they can apply for your government bonus. Your solicitor or conveyancer will then apply online for your government bonus to be transferred to them at a date of their choice.
Bad news for Buy to Let owners and second home owners. Money raised from tax on people buying their second home will be used to help those struggling to buy their first home. From 1 April 2016 people purchasing additional properties such as buy to let properties and second homes will pay an extra 3% in stamp duty. Good News for Housing Association tenants who will be able to buy their homes, with the first sales in 2016. Currently, most people who rent a council home have the right to buy their home from the local authority. There are discounts on the home price available in many cases, depending on how long people have lived there. Right to Buy will now be extended
to housing association tenants during 2016, giving 1.3 million households the chance to become home owners. A small number of housing associations will be piloting the scheme in the next few months. More information is available on the Right to Buy website. Help to Buy ISAs to help first timers save for a deposit. Several banks and building societies have already committed to offer the Help to Buy: ISA from 1 December. Barclays, Lloyds Banking Group, Nationwide, NatWest, Santander, and Virgin Money will be offering Help to Buy: ISAs. You will be able to put away up to £200 a month in the Help to Buy ISA that the government will then top up by 25%, up to a maximum of £3,000. In the first month you’re also able to put away £1,200 that’s an extra £1,000 on top of the monthly maximum of £200. Your bonus has to be put towards your deposit for a home You can only claim your bonus when you are buying a home – and the money has to go towards
You need to apply for your bonus within 12 months of closing your account Do you think these government initiatives are helpful for first time buyers? What do you think has caused house prices to get to such crazy levels? ¡¡ Too much demand versus supply ie not enough building? ¡¡ Buy to let – pushing prices up ¡¡ Low interest rates for eight years? ¡¡ The reduction of stamp duty at the lower levels?
To advertise in Mimagazine call 01582 748981 or email janet@mimagazine.co.uk
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