Legal Experts Say Move Will Boost The Whole Housing Market

By Dave Grimshaw

Conveyancing experts say bringing forward a scheme allowing people across the UK to take out 95% mortgages three months earlier than planned will have an effect on the whole housing market.

The Prime Minister rejected concerns that the ‘controversial’ Help to Buy scheme will fuel a housing bubble saying that first-time buyers needed more help to get on the housing ladder.

Now experts at law firm Irwin Mitchell say the scheme will not only give help to those who want to buy a home for the first time; but the whole market will be boosted as the scheme has a knock-on effect further up the ladder.

Eve Lake, a conveyancing expert at Irwin Mitchell who helps people to buy and sell their homes, said: “Renting a property is becoming increasingly more costly. The Help to Buy scheme gives people a much better chance of getting on the housing ladder.

“The majority of the time people can actually afford the mortgage payments but do not have the finances to bring together a large deposit. This scheme will help people in that position and will give the market a great push in the right direction.

“Obviously this is great news for first time buyers but also a welcome boost for the entire housing chain. Making it easier to buy properties also makes it easier for those taking their 2^nd or 3^rd step to sell, so bringing the Help to Buy scheme forward will have a positive knock-on effect for the whole housing market.

“It’s also important to remember that the scheme also ranges up to £600,000 so it will help people across the board and not just first-time buyers.”

The scheme will now allow applications from 7 October but the loans will not be paid out until 1 January 2014.

Read more about Irwin Mitchell’s expertise in Conveyancing.