The Help to Buy Scheme, started in England in April 2013, attracts more criticism than praise. Many accuse it of causing a ‘housing bubble’, replacing the ‘bank of mum and dad’ with government funding, and focusing government money on private instead of much-needed social housing.
Most media coverage has been so skewed towards the scheme’s rights and wrongs that people don’t actually understand how it works. There are two schemes, both, confusingly, called Help to Buy. I call them Help to Buy 1 (H2B1) and Help to Buy 2 (H2B2).
In the first, a buyer applies to a local Help to Buy Agent to fund up to 20% of new build property costs. The buyer needs only a 5% deposit, and to secure a mortgage of 75%, to buy. The government pays up to 20% of new build costs into the developer’s bank account on completion.
The second scheme is very different. To purchase an existing house, I apply to a lender for the Help to Buy mortgage scheme. I can then buy a property with a 5% deposit and a 95% loan. The government offers no financial support, but guarantees the lender that on default of payments and property repossession, it will fund losses up to 15%.
So what is the real impact of these schemes and do we need it in Lincolnshire? In England, current estimates suggest that the H2B1 Scheme has sold 20,000 new builds over six months, and that the H2B2 Scheme, initiated in October 2013, enabled 6,000 over three months. That’s 5,500 properties per month sold via H2B.
Given we sell 70,000 to 90,000 properties monthly in England, the H2B scheme contributes around 6% volume per month, refuting political and PR claims that H2B schemes drive prices up. What the scheme has done is helped existing UK homeowners by bringing confidence back into the market, encouraging some price growth, but mostly reversing market falls.
The downside though is that it is, in some cases, replacing the “bank of mum and dad”, but this applies to whether or not people have access to family funding. Rumours suggest too that developers are using the first scheme to increase their profit margins, as although they aren’t raising prices, they have withdrawn normal incentives such as funding stamp duty, better interior specifications and even new cars.
From Lincolnshire’s perspective, situated on the borders of the East Midlands and Yorkshire and Humber, East Midlands has the highest take up rate. More H2B deals mean more sales of new and existing homes, more work for building sites, agents, conveyancers, removal companies and brokers or local lenders participating in the scheme. Of course, this means more jobs which is good news for Lincolnshire, as our claimant count is currently above the national average.
The scheme’s main drawback though is its failure to tackle our chief problem: a lack of affordable homes. These include shared-ownership properties, properties rented out at 80% of local market rent, and those rented and then bought later. In Lincolnshire this shortage is demonstrated by the 3,000 people waiting for a roof over their heads. Unfortunately this scheme does little to help them.
Kate Faulkner is Managing Director of propertychecklists.co.uk. The site gives free advice to consumers on how to measure their local market and an understanding of how to buy their first home or trade up. Kate’s background stretches from self-build to part exchange to buy to let and renovation. She is the author of the Which? property books and regularly appears on local and national media.
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We are appealing for witnesses and dashcam footage after a collision caused serious injuries to a 23-year-old man.
Just before 3.30pm yesterday (2 July), we received reports of a collision on Barholm Road in Tallington. It involved a grey BMW 335D estate, a blue BMW 116D and an orange KTM motorcycle.
The motorcycle rider, a 23-year-old man, sustained serious injuries during the collision and was taken to hospital.
If you witnessed the incident and are yet to get in touch with us, please do so. If you have any other information or dashcam footage available that may have captured the road along the A1175 at the time of the collision, get in touch.
By calling 101 quoting incident 282 of 2 July.
By emailing [email protected] quoting incident 282 of 2 July in the subject line.
If you wish to remain anonymous, you can report via the independent charity CrimeStoppers on 0800 555 111 or online.
The 2022 Destination Lincolnshire Tourism Excellence Awards are open for applications, and Destination Lincolnshire giving you the rare chance to co-create your application with Nell Barrington, a tourism awards veteran, who has helped hundreds of businesses write winning applications over the last 15 years – including national VisitEngland winners.
The Tourism Awards Masterclass is taking place on Tuesday 12 July at 11am for one-hour online. Laura Freer, Head of Marketing at Destination Lincolnshire said: “This is a golden opportunity, after years of hard work and heartache, to get your business and team recognised and rewarded.
“A well written application is key to achieving a coveted place on this year’s shortlist, and I’d encourage all tourism and visitor economy businesses who are thinking of entering – whether they are seasoned at writing award applications or not – to join us for this exclusive masterclass.
“Nell Barrington has worked with us and VisitEngland on the founding application processes of these awards, and she is perfectly placed to assist in co-creating applications that you can be proud of. This is a great opportunity for business development too – whether you are shortlisted for an award or not – discovering how to effectively apply for awards and talk up your business adds another string to your bow.
“Booking is essential and places are limited to just 35 – so be quick! This year we’ve made our masterclass available to partners and also to those who we are yet to work with for free. Call it an added bonus, after two years away from the awards circuit.
The awards masterclass is focussed on the application process, and it will spell out what the judges are looking for. You’ll learn how to make your application stand out from the local competition, helping your chances of going through to the national VisitEngland Awards in 2023.”
There are fifteen categories open for nominations from visitors attraction, accommodation providers, hospitality businesses and many more.
The deadline for nominations is July 29, with online judging starting on July 30 and mystery shopping from August 13. Finalists will be announced on Monday, August 15.
The awards ceremony will be held at the Engine Shed on October 21, and will be hosted by Lincs FM presenter, John Marshall.
The event is organised by Stonebow Media, publishers of The Lincolnite, to celebrate the best businesses in Greater Lincolnshire, alongside headline sponsors Lincoln College and Destination Lincolnshire.
We would also like to thank our other sponsors Visit Lincolnshire, Heart of Lincs, Duncan and Toplis and LNER, insight6 and EV Camel.