Introducing London Help to Buy and Help to Buy: Shared Ownership
A new Help to Buy equity loan scheme for London will give buyers 40% of the home value from early 2016, as opposed to 20%, as the current scheme offers.
The government is also announcing a series of other schemes, including Help to Buy: Shared Ownership to help people get on the housing ladder.
From 1 April 2016 people purchasing additional properties such as buy to let properties and second homes will pay an extra 3% in stamp duty. Money raised from tax on people buying their second home will be used to help those struggling to buy their first home.
The Chancellor said: "The government will help address the housing crisis in our capital city with a new scheme – London Help to Buy. Londoners with a 5% deposit will be able to get an interest-free loan worth up to 40% of the value of a newly-built home."
Russell Quirk, CEO at eMoov, had this to say: "Mr Osborne has announced a new ‘London Help 2 Buy’ scheme, offering help for those with a 5% mortgage deposit. Given that this translates to a deposit of £25,000 on the average London house price, I can’t imagine it will help too many who are struggling to get on the ladder in the first place."
Mark Hayward, managing director, National Association of Estate Agents (NAEA) commented: “The introduction of the London Help to Buy initiative is a step in the right direction for FTBs, although a five per cent deposit on the average price of a home in London is still not affordable enough.”
