Although it is too soon for the Help to Buy scheme to be visible in the building data, it is encouraging that output in the construction sector rebounded in the second quarter increasing by 0.9%. Looking at the RICS data we can see that:
- Construction workloads seem to be increasing across the majority of regions. The largest increase appears to be in the private housing sector.
- And more buyer enquires than new instructions are putting pressure on prices - they're going up!
Key points from the latest release are:
- Seasonally adjusted house building starts in England are estimated at 29,510 in the June Quarter 2013, 6% higher than the previous quarter
- Completions (seasonally adjusted) are estimated at 27,270 in the June quarter 2013, 9% higher than the previous quarter
- Private enterprise housing starts (seasonally adjusted) were 7% higher in the June quarter 2013 than the previous quarter, while starts by housing associations were 3% lower
- Seasonally adjusted private enterprise completions increased by 11% and housing association completions increased by 3% from the previous quarter
- Seasonally adjusted starts are now 73% above the trough in the March quarter 2009 but 40% below the March quarter 2007 peak; completions are 44% below their March quarter 2007 peak
- Annual housing starts totalled 110,530 in the 12 months to June 2013, up by 7% compared with the year before; annual housing completions in England totalled 106,820 in the 12 months to June 2013, 9% lower compared to the previous 12 months.
Help to Buy
The Help to Buy scheme is an extension of the FirstBuy deal. That was only available to first time buyers, but now existing homeowners can join in now and purchase a brand new house with the help of an Equity Loan from the government of up to 20% of the property's value.
The launch by the Government in October 2013 is three months earlier than planned.
With the purchaser only needing a 5% deposit and the Government's equity loan this means they can access a 75% mortgage, which opens the door to more competitive lending rates.
How it works:
- Help to Buy is available to all new homebuyers, not just first time buyers.
- You only need a minimum 5% deposit to qualify
- The Government will lend you up to 20% of the value of your property through an equity loan.
- The loan can be repaid at any time or on the sale of your home
- You will only need to secure up to a 75% mortgage from a bank or building society
- Only available on new build homes
- There is a maximum home purchase of £600,000
- Help to Buy is only available on new homes in England
Of course there's still a long way to go which is why HBXL's software suite has never been more relevant in meeting the needs of builders in this testing climate. Why not talk through your own particular issues with one of the HBXL team to find a software solution to suit you. You can reach them on 0845 1234 065.
