The government of Wales has a deposit contribution plan, called Help to Buy, to aid house hunters in purchasing new build homes. Once a buyer comes up with 5% of the deposit, the Welsh government will loan up to an additional 20% of the purchase price. The program has helped nearly 5500 home purchases occur since it began in 2014. When the owners eventually sell, they repay the same percentage as they were loaned, regardless of the sale price. Many are calling for the program to be expanded, to include “secondhand” properties, and to encompass all of the UK instead of just Wales.
Key Takeaways:
- At least a fourth of the freshly built Welsh homes were purchased last year with the help of the Help To Buy shared equity scheme.
- Some suggest the scheme’s specific application to new homes should be broadened to include other domiciles, as it’s not a market stimulant as it stands.
- The program, stipulates the home buyer come up with 5% of the deposit, which is then added to an additional amount from the Welsh government, up to 20% of the purchase price.
“Unfortunately it’s now turned into something of a curse for most people because ironically we’re now seeing house prices pushed up”
Read more: https://www.bbc.com/news/uk-wales-40857604