For many people, homeownership is a dream, and a rite of passage. However, it appears as though the Government is actively driving people into owning property.
Housing minister Chris Pincher, in a blog written for Zoopla, said; “Extending the aspiration of home ownership is a central mission of this government.”
He followed this by saying; “Recent polling has revealed that the desire for home ownership has increased during the pandemic with many people looking to take their first step onto the housing ladder. Polling has revealed that 69 per cent of private renters and 63 per cent of people living at their family home struggle to find many mortgages with a low deposit.”
Pincher was speaking in defence of the 95% mortgage guarantee scheme, which is now in place.
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Zoopla have highlighted how this measure is viewed, by some, as a political act. There is a believe that a greater level of 95% mortgages will be more beneficial to property buyers in the north of England, and in Scotland.
Richard Donnell, Zoopla’s research and insight director, says: “The scheme will have less impact for buyers in southern England where high house prices are a major barrier to being able to afford a 95 per cent mortgage. This aligns to the levelling up narrative and policy approach of government.”
In his Zoopla blog Pincher goes on to say: “First-time buyers will be able to purchase a home with only a five per cent deposit – meaning they can purchase their home having saved a smaller amount upfront. As we build back better from the pandemic, we are determined to do everything we can to support first-time buyers and the housing market. We are building more homes – in 2019 a pledge to build 300,000 new and attractive homes a year was announced with an investment of over £12bn in affordable housing over the next five years – the largest investment in a decade.”
Can buyers in Stanmore utilise this scheme?
Therefore, this move isn’t too relevant for buyers in the capital, which is the market we are most interested in. While the 95% mortgage should assist first-time buyers, the cost of property in London means that a sizable deposit is still required.
According to Rightmove, as of the end of April 2021, the Stanmore housing market can be described as such:
“Properties in Stanmore had an overall average price of £608,071 over the last year.
The majority of sales in Stanmore during the last year were semi-detached properties, selling for an average price of £584,077. Flats sold for an average of £384,710, with detached properties fetching £1,109,750.
Overall, sold prices in Stanmore over the last year were similar to the previous year and 5% down on the 2015 peak of £642,015.”
As you’ll know, with a threshold of £600,000; buyers will not be able to capitalise on the 95% mortgage guarantee scheme when buying at the average price of property in the local area. However, with flats coming in well below the threshold, it could be an area that first-time buyers are keen to consider.
If you have any questions about the Stanmore housing market, contact Stones Residential, and we will be more than happy to assist you.
If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.
