Help to Buy scheme puts 31 Herefordshire residents on property ladder

Hereford Times: 31 people in Herefordshire have used the Help to Buy scheme to get on the property ladder. 31 people in Herefordshire have used the Help to Buy scheme to get on the property ladder.

MORE than 30 people in the county have been able to get onto the property ladder thanks to the government's Help to Buy scheme.

Figures released this week show that by May 31 this year, 31 people in Herefordshire had been able to buy their own home.

The Help to Buy Equity Loan scheme enables people to buy a newly-built home with a deposit of at least 5% of the property price, while the government offers a loan of up to 20%.

The rest is covered by a mortgage. This portion of the scheme has been extended up to March 2020 with a further £6billion – meaning the scheme will support the construction of up to 200,000 new homes.

“I am encouraged that 31 people in Herefordshire have taken advantage of this government scheme and now own their own homes," said Bill Wiggin, MP for north Herefordshire.

"This scheme is playing a key role in the government’s long-term economic plan, both helping people buy their own home and also boosting housebuilding and creating jobs in construction."

Ross Abell, 25, bought a house with his girlfriend in Holmer, Hereford, in April this year.

"I think the scheme helped us get onto the property ladder earlier than we first thought and by being able to put down a smaller deposit it allowed us to have the money to pay all the legal fees, including stamp duty.

"It also made the mortgage payments manageable so that we could have some money to put toward things to go in the house," he said.

Samuel Cooke, 26, who is originally from Herefordshire is also looking to get onto the property ladder by buying his first home with girlfriend Natalie in Exeter.

He said the scheme strikes a "good balance" between excessive, irresponsible lending and overly cautious lending.

"In terms of benefits, it's allowed people like myself and my girlfriend Natalie, who earn enough to comfortably pay a mortgage but didn't quite have a big enough deposit, to buy a house," said Mr Cooke, who is an education recruitment consultant.

"I think the type of people who use it have some deposit and earn enough to pay a mortgage and it allows the banks to lend to those people without too much risk. It's also good for government income as they own 20% of the house, so if it was sold later on for a higher price after five years, they get a return on investment, which I see as a fair reimbursement for us being able to buy a house that we previously wouldn't have been able to.

"It's also working out cheaper than renting, thus avoiding paying someone else's mortgage or the unnecessary estate agent fees for rents."

Anyone wishing to find out more about the scheme can visit you gov.uk/affordable-home-ownership-schemes/overview.

Comments (4)

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8:21am Mon 7 Jul 14

fandang0 says...

Frankly, this is all very well until interest rates start to rise, which they'll inevitably have to over the next few years.

31 new Herefordshire home owners really is a drop in the ocean, compared to what is needed, and I imagine the majority of these will be professional, graduate couples with some money from parents behind them... the situation won't be improved until we see a reasonable correlation between average wages and house prices in Herefordshire.

All 'right to buy' has reasonably achieved is a rampant over-fuelling of house prices in London and the South East, as a consequence of which, people who purchased in London a mere 10-15 years ago are now able to sell up and buy up Herefordshire homes outright...

I think this article puts an unnecessarily slanted spin on another flawed coalition policy... general election coming up, anyone?
Frankly, this is all very well until interest rates start to rise, which they'll inevitably have to over the next few years. 31 new Herefordshire home owners really is a drop in the ocean, compared to what is needed, and I imagine the majority of these will be professional, graduate couples with some money from parents behind them... the situation won't be improved until we see a reasonable correlation between average wages and house prices in Herefordshire. All 'right to buy' has reasonably achieved is a rampant over-fuelling of house prices in London and the South East, as a consequence of which, people who purchased in London a mere 10-15 years ago are now able to sell up and buy up Herefordshire homes outright... I think this article puts an unnecessarily slanted spin on another flawed coalition policy... general election coming up, anyone? fandang0
  • Score: 4

9:22am Mon 7 Jul 14

yokelyokel says...

Spot on, fandang0

This policy has been more accurately described as Help to Sell. At the end of the day, public money ends up in the pockets of the big housebuilding companies, prices are kept high - the housebuyers have a large debt and the government is financially exposed to what is generally regarded as a bubble.

Also don't forget that Bill Wiggin is notoriously muddled when it comes to mortgage payments - even claiming expenses to cover them on a house with no mortgage. Strange that someone with a background in banking should get so muddled over a mortgage but it does mean he probably isn't qualified to promote government money being pumped into private housing.

The House of Commons finance select committee is against the policy - including Jesse Norman who also disagrees with the policy. Perhaps the Hereford Times could get his views to put alongside Bill Wiggins'
Spot on, fandang0 This policy has been more accurately described as Help to Sell. At the end of the day, public money ends up in the pockets of the big housebuilding companies, prices are kept high - the housebuyers have a large debt and the government is financially exposed to what is generally regarded as a bubble. Also don't forget that Bill Wiggin is notoriously muddled when it comes to mortgage payments - even claiming expenses to cover them on a house with no mortgage. Strange that someone with a background in banking should get so muddled over a mortgage but it does mean he probably isn't qualified to promote government money being pumped into private housing. The House of Commons finance select committee is against the policy - including Jesse Norman who also disagrees with the policy. Perhaps the Hereford Times could get his views to put alongside Bill Wiggins' yokelyokel
  • Score: 10

12:05pm Mon 7 Jul 14

mizza21 says...

great posts you two.

help to artificially inflate the housing bubble is another name for it.

I realise there are individual stories of folk who have benefited but it's in no-ones interests that house prices rise except for Her Majesty's Revenue and Customs.
great posts you two. help to artificially inflate the housing bubble is another name for it. I realise there are individual stories of folk who have benefited but it's in no-ones interests that house prices rise except for Her Majesty's Revenue and Customs. mizza21
  • Score: 5

9:00am Tue 8 Jul 14

WYSIATI says...

You have to admit that as a policy it's done what it was set up to do - turn a stagnant housing market back into one where prices push up above inflation and way above wages. Bailed out a number of banks and saved several of the large house building companies. Oh, and it has helped some people who do not meet the criteria set by lenders get mortgages they would not have got in a free market.

One or two problems in all that - lending to people and organisations that are not good bets was at the root of the financial crisis, houses and housing goes further out of reach for more people and the Government (ie us) are left holding the dangerous debt. Longer term it is not sustainable that house prices go up any faster than wages or inflation, it is fabulously unproductive as a way to spend money (sucking it out of the economy and into the pockets of the banks to rebuild their finances). And the further we go the more dependent we all get on the madness of ever increasing property prices.

Would be good to see some politicians with some serious proposals to sort out the mess that is our housing.

Yokel - MPs presumably came up with this wheeze when their own help to buy schemes were outed?
You have to admit that as a policy it's done what it was set up to do - turn a stagnant housing market back into one where prices push up above inflation and way above wages. Bailed out a number of banks and saved several of the large house building companies. Oh, and it has helped some people who do not meet the criteria set by lenders get mortgages they would not have got in a free market. One or two problems in all that - lending to people and organisations that are not good bets was at the root of the financial crisis, houses and housing goes further out of reach for more people and the Government (ie us) are left holding the dangerous debt. Longer term it is not sustainable that house prices go up any faster than wages or inflation, it is fabulously unproductive as a way to spend money (sucking it out of the economy and into the pockets of the banks to rebuild their finances). And the further we go the more dependent we all get on the madness of ever increasing property prices. Would be good to see some politicians with some serious proposals to sort out the mess that is our housing. Yokel - MPs presumably came up with this wheeze when their own help to buy schemes were outed? WYSIATI
  • Score: 4
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