So, the Conservatives have won the majority vote in Parliament and David Cameron is set to return to Downing Street as Prime Minister once again. But after this
somewhat surprising victory, how will homeowners, prospective buyers and landlords stand to benefit from the refreshed government?
Amid all of the parties’ manifestos, first-time buyers found themselves at the helm of attention. Labour pledged to give first-time buyers priority on new homes built for a period of two months and the Liberal Democrats proposed a ‘Rent to Own’ scheme where first-time buyers built up shares in their homes through renting.
The party that matters though is the Conservatives. David Treharne of Mortgage Advice Bureau looks at what the Tories plan on bringing to the table.
What have they proposed?
Their flagship policy, albeit a controversial one in the industry, is the expansion of the Right to Buy scheme which will see tenants of housing association properties receive huge discounts, allowing them to consider purchasing their homes.
1.3 million tenants could qualify for discounts of 35 per cent up to a maximum of 70 per cent up to a maximum of £102,700 in London and £77,000 across the rest of the country.
Help to Buy ISA
Announced in the Budget in March, come the autumn, hopeful and prospective homeowners will receive a Help to Buy “savings account” that will see the government top up £50 for every £200 saved towards a deposit, up to a maximum of £3,000.
Aspiring homeowners under a Conservative government would have access to a Help to Buy Isa, which would top up £50 for every £200 saved towards a deposit, up to a maximum top-up of £3,000. This was announced in the March Budget.
Only available for the next four years and being introduced in the autumn, the new savings account will only be available to consumers who are yet to buy their first home and will have no limit to how long people can use the accounts for.
First-time buyers based in London will be able to use the savings to buy properties worth up to £450,000, whilst the rest of the UK will see a ceiling of £250,000.
Discount homes for first-time buyers
David Cameron has pledged to offer up to 100,000 new homes to first-time buyers under the age of 40 at a discount of 20 per cent.
The ‘starter homes’ initiative has been created to encourage home ownership among young buyers and to boost construction of new homes by building on brownfield land – land previously used for commercial uses or industrial purposes.
While this means that, if you qualify, you will be able to afford a property that you would have previously struggled to, it should be noted that you will not be able to sell the home at full market price for five years after you purchase it.
A London Land Commission will also help release brownfield land owned by the public sector in the capital for building by promising a £1bn brownfield regeneration fund to unlock sites for around 400,000 homes.
With the general election now over and done with, new policies from the Conservatives will be coming through thick and fast which is why it is important to speak to a professional mortgage adviser who will have the latest information to help you through the mortgage process.