The program of the government “Help to buy” will give impetus to the real estate market in the UK

The real estate market in the UK this week starts the second stage of the governmental program “Help to buy”. All market participants – creditors and buyers look forward to what this will mean.

There is an opinion that most likely there will be a reduction of the Deposit (initial payment) to 5 %. Research the largest real estate Agency Zoopla, the average value of the real estate object is acceptable for use under this scheme is £222168 pounds. Accordingly, the average Deposit would be around £11000 pounds. However, the program will be structured in such a way that the size of the down payment will vary depending on the region. For example, the average Deposit is in Yorkshire is just £8129 pounds, that will be the lowest level of the Deposit across the country.

For the price of Deposit less than £10,000 pounds it will be possible to get a mortgage in the North East, North West, Wales, West Midlans, East Midlans.

In London, where housing prices are traditionally much higher, the scheme would enter into a mortgage contract with a Deposit average of about £48309 pounds.

This system of differentiation by regions is designed to bridge the gap between the regions and the availability of housing of different social groups of people.

Housing prices in the UK started to grow, interest rates on loans are quite low and inflation consistently above the planned values, and revenue growth is significantly lagging behind. In such circumstances, many people find it very difficult to keep up with prices and save on initial Deposit.

The scheme will help the potential buyer to solve the problem of the down payment and to afford to buy property to people who were previously priced out of the market is too tough economic conditions.

In addition, according to the calculations of economists, the measures of the government to maintain lending will help stimulate the housing market in the short term. Outside London the market is very sluggish and in desperate need of a boost.

Government assistance will create a healthy balance between supply and demand and will help to eliminate the imbalance in the market.

All the details of the new stage of the program “Help to buy” will be announced this week. It is not excluded that buyers too low, the Deposit will have to pay higher interest rates.

However, the first stage of the program “Help to buy” exceeded the most optimistic expectations of both the government and buyers, thereby demonstrating its necessity and viability.

® Eleantra. 07.10.2013