Despite the 20% discount a large part of UK housing inaccessible to young buyers

Despite the existing program of discounts “Discounted starter homes” that are presented to the young family and first-time buyers buying a property for many families in the UK to buy your own home remains a distant dream.

The government program Discounted starter homes, in accordance with which first-time buyers buying a house will be able to choose out of the 200,000 housing units over the next five years , which will cost London up to £450000 and other cities in the UK – an average of £250000.

However, local municipalities are concerned that in many places where the housing shortage is felt most acutely is to provide affordable real estate to all comers. And although the builders will be able to cost and sell the property at prices below the average in the regions, there are fears that it will be impossible to achieve without reducing the quality.

In accordance with the UK rules, to rely on the assistance of the government in the preferential purchase of housing will be able to people who have 30% or more of their income to spend for the lease or purchase of real estate.

A study conducted by Savills, shows that in 67% of the municipalities from 220, even at a discount of 20% will be out of reach for most in need. Somewhere because of too high prices, somewhere for the reason that market demand far exceeds supply and affordable housing not enough for everyone. In General, both of these factors have a place.

Basically the scheme will be able to work in the North-East, North-West areas of England and in the middle part. For residents of London, South-East and South-West England, even a 20% discount leaves you with the option of buying your own home is beyond reach.

Thus, the municipalities should find other solutions to the housing crisis, stroke as the construction of housing for rent and social rent for those groups of people who are deprived of the opportunity to buy a real estate property.

® Alice Morgan. G. 09.02.2016

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