Help to Buy? Property expert Kate Faulkner assesses the different Help to Buy schemes, plus their pitfalls.
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are using the first scheme to increase their profit margins, as although they aren’t raising prices, they have withdrawn normal incentives such as funding stamp duty, better interior specifications and even new cars.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.
Fewer cases but more deaths this week
There have been 1,643 new coronavirus cases and 83 COVID-related deaths in Greater Lincolnshire this week – compared to 1,670 cases and 71 deaths last week.
Some 304 new cases and 17 deaths were reported in Greater Lincolnshire on Friday – the third day in a row with 17 deaths.
The government’s COVID-19 dashboard recorded 252 new cases in Lincolnshire, 28 in North Lincolnshire and 24 in North East Lincolnshire.
On Friday, 14 deaths were registered in Lincolnshire, two in North East Lincolnshire and one in North Lincolnshire. These figures include deaths both in and out of hospitals, as well as residents in hospitals outside the county.
NHS England reported six new local hospital deaths at United Lincolnshire Hospitals Trust, four at Northern Lincolnshire and Goole NHS Foundation Trust (NLAG) and one at Lincolnshire Community Health Service hospitals. Some 51 hospital deaths have been recorded this week, compared to 48 last week.
On Friday, national cases increased by 40,261 to 3,583,907, while deaths rose by 1,401 to 95,981.
Lincolnshire health bosses estimate that 80-90% of new coronavirus cases in the county are now a mutant, more infectious strain of COVID.
Figures earlier this week said that by January 8, 59.2% of cases had confirmed the new virus — up from 36% by the end of 2020 — and now county leaders estimate the number to be even higher.
The COVID mutation that has taken over most new cases in Lincolnshire is not only more infectious, but also more deadly, it has been revealed.
NHS bosses are hoping to offer all care homes in Lincolnshire the first COVID vaccine dose by the end of the week. This comes as almost 5.4 million people have received jabs nationally.
Director of Nursing at Lincolnshire CCG Martin Fahy told BBC Radio Lincolnshire that about three quarters has been completed so far.
A single week in December saw Lincolnshire deaths reach 13 times the yearly average, explained local health bosses frustrated with COVID deniers.
Lincolnshire County Council’s Director of Public Health Professor Derek Ward explained that the week including December 14 would usually see an average of 23 deaths, but 2020 say 301 deaths that week.
In national news, there are no plans to pay everyone in England who tests positive for COVID-19 £500 to self-isolate, No 10 has said.
The PM’s official spokesman said there was already a £500 payment available for those on low incomes who could not work from home and had to isolate.
The coronavirus R number in the UK has fallen sharply since last week, suggesting the lockdown is slowing the spread of coronavirus.
The R, which refers to the number of people that an infected person will pass COVID-19 on to, is between 0.8 and 1 across the UK, according to the figures released by the Government Office for Science and the Scientific Advisory Group for Emergencies (SAGE).
This means for every 10 people infected with COVID-19, they will pass the virus on to between eight and 10 others.
Lincoln City has taken the top spot with the highest infection rate in Greater Lincolnshire.
This week saw South Holland at the top which was put down to two outbreaks in care homes with up to 100 cases. South Holland has now dropped to third place in the region.
Greater Lincolnshire still remains way below the national average infection rate of 472.9, with just 217.3 per 100,000 of the population.
Here’s Greater Lincolnshire’s infection rate over the last seven days up to January 22 according to the government dashboard:
Greater Lincolnshire’s infection rates from Jan 15 to Jan 22. | Data: Gov UK / Table: James Mayer for The Lincolnite
Greater Lincolnshire includes Lincolnshire and the unitary authorities of North and North East (Northern) Lincolnshire.
45,645 cases (up 304)
1,760 deaths (up 17)
of which 1,047 hospital deaths (up 11)
3,583,907 UK cases, 95,981 deaths
The charity project turned into a business
A Lincoln couple will reopen their independent pizzeria at a new location on Friday night, with an array of main and signature pizzas and Belgian waffles.
Weirdough’s Pizza Emporium will open at Tap & Spile on Hungate from 5pm on Friday, January 22, but it initially started out as a charity project making Neo-Neapolitan pizzas.
Husband and wife team Matt and Rachel Barnes have lived in Lincoln for around five years and last year they wanted to do something to raise money for the NHS.
Matt starting to prepare a pizza. | Photo: Steve Smailes for The Lincolnite
Kneading the dough. | Photo: Steve Smailes for The Lincolnite
Matt used to work at a Lincoln school, but they were closed to most pupils for a few weeks in March, so he started working on a project and Weirdoughs Pizza Emporium was born.
It was initially run from The West End Tap from the end of last summer, but in January the pub announced it would not reopen again under its current management, so Weirdoughs had to find a new premises.
The base ready for the next stage of the pizza making. | Photo: Steve Smailes for The Lincolnite
Matt putting the pizza into the oven. | Photo: Steve Smailes for The Lincolnite
The tasty pizza in the oven. | Photo: Steve Smailes for The Lincolnite
Adding the finishing touches to the pizza. | Photo: Steve Smailes for The Lincolnite
All profits made from the food sold – just under £2,000 – went to the NHS. The couple also did some drop offs at the coronavirus ward at Lincoln County Hospital.
Matt was made redundant at the end of May and Rachel was due to give birth four weeks after that.
It was a hectic time for the couple as Rachel, who works at a primary school in Peterborough, would be on maternity leave and Matt would soon have no income.
The Margz main pizza – San Marzano tomatoes, mozzarella and basil. | Photo: Steve Smailes for The Lincolnite
The Weirdough – San Marzano tomatoes, parmesan, Emmental, mozzarella, red onions, roasted red peppers, mushrooms, spicy Nduja sausage, rocket, balsamic glaze and garlic drizzle. | Photo: Steve Smailes for The Lincolnite
As the pizzas were working so well and following feedback from customers, the couple decided to turn it into a business.
Dan Neale, who previously ran the West End Tap, has joined the Weirdoughs team of four as a pizza chef.
Or why not try a Create Your Own Weirdoughs Waffle? | Photo: Steve Smailes for The Lincolnite
The dough is homemade 24 hours ahead to make their special main and signature pizzas, while customers can also order a create your own Weirdoughs waffle.
The Belgian waffles come with a variety of toppings such as Kinder Bueno, Crunchie, and Galaxy Caramel, with sauces including white and milk chocolate, salted caramel and toffee, with ice cream.
Weirdoughs will open Friday to Sunday 5pm-9pm and Wednesday to Thursday 5pm-8pm for takeaway or delivery.
Pre-ordering is advised via Facebook or Instagram or by calling 07734 297 035, with the latter option preferred if it is after 4.30pm.
Owner Matt Barnes will help meet your pizza needs. | Photo: Steve Smailes for The Lincolnite
Delivery is available to the following areas: Ermine, St Giles, Monks Road, High Street, Bailgate, Boultham, West End and the city centre.
Weirdoughs will try and accommodate other areas too, but it may incur additional charges, while the takeaway will also be joining Uber Eats in the near future.
Weirdoughs will be based inside the Tap & Spile pub in Lincoln. | Photo: Steve Smailes for The Lincolnite
Once pubs are allowed to reopen again, customers at the Tap & Spile will able to order Weirdoughs food straight to their table and Matt said he can’t wait for people to able to experience it that way.
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