10,000 sign-ups for Help to Buy
Government suggests there has been an increase of 6,000 Help to Buy signups since June, fuelling a surge in the UK housing market
August 13, 2013
The Royal Institution of Chartered Surveyors (Rics) said that Help to Buy was one of the initiatives that have contributed to a recovery in the UK’s property market.
In its monthly report, Rics says house prices have risen for the last four months and the rise in July was the fastest since November 2006, when the housing market was at its peak.
The report showed that the West Midlands and north-east England had seen more buyer interest in June than they had at any point in the last 14 years.
Rics also indicated that the Government’s Funding for Lending (FLS) scheme, which allows banks to borrow money cheaply from the Bank of England in order to lend it, was boosting the housing market, saying it had ‘played a role in helping to improve mortgage availability’.
Rics said FLS had improved loan-to-value (LTV) ratios on mortgages, meaning that average loans are now 83.6% of the value of a property, whereas the figure last year was 81.6%.
Government has also indicated that the average price of a flat in England and Wales has surpassed £250,000 for the first time. While the average property price is now £242,415, the figure for flats is now £250,101.
The rise in asking-prices for flats will mean buyers will have to pay more for stamp duty, as £250,000 is the threshold at which the charge jumps from 1% to 3% of the total purchase price.