Research shows that rent prices in the UK will most likely rise as a result of the new stamp duty rate that was introduced on 01 April for additional properties, as it will hit landlords of buy to let properties.
The extra tax, which affects anyone buying an additional home, is seen as a huge burden for the UK’s private rental sector at a time when there is increased demand for rented homes. Unfortunately, a reduction in available supply of rented accommodation will mean that prices are forced upwards, meaning that London will become even more unaffordable.
As a consequence of the housing shortage, London is potentially on the cusp of the resurgence of the corporate-sponsored worker housing, which was previously adopted by the Bournville family during the Victorian era. Large and small employers alike are increasingly worried about London’s living costs, and therefore, the concept of large blue chip companies providing good quality housing seems like one of the most promising options.
Worryingly, current projections suggest that central London house prices will grow by 15 per cent over the next five years, and rents by 22 per cent. Companies are therefore becoming increasingly worried that they will fail to attract and retain the best talent, and are searching for a a speedy answer.
Fortunately, thanks to recent government legislation, help to buy is now giving first time buyers a helping hand. Help to Buy could mean an end to renting for thousands of Londoners and commuters, as suddenly, property ownership is far more within reach. Help to Buy offers a Government equity loan of up to 40% of the value of your home, on Inspired Homes’ London properties in Greater London boroughs including Croydon and Sutton. In addition, a 20% Help to Buy loan can be available on our other developments including Epsom, Crawley and Chertsey. A 5% deposit is all that’s required up front, so owning a piece of ‘Brilliant Living’ is now a real possibility.
At Inspired, we strongly believe that hard-working Londoners should be able to own their own home, which is why we work tirelessly to deliver affordable luxury in excellent locations.
Speak to our Sales team to find out more about Help to Buy and to obtain expert financial advice on whether you are eligible by calling 020 8688 6552.