DevDosh Ltd recently found that according to research from an independent estate agent, that Property prices in the UK’s capital of London are being negatively impacted by the irrational 600,000 GBP limit set by the Help to Buy scheme.
A recent was conducted to look into seven London developments in prime locations, the survey found that new-build properties in these areas were 4 times more likely to be sold below the 600,000 GBP threshold, in comparison to just over it in the previous 12 months.
The research by James Pendleton quite clearly shows that a total of 83% of new build properties on the market for between 575,000 and 625,000 GBP in these areas sold for less than 600,000 GBP
Due to the upper limit impose by the Help to Buy Scheme experts from James Pendleton warn that this creating a vacuum in properties being sold between 600,000 and 625,000 GBP
The research revealed that nearly twice as many properties are selling within this bracket compared to last year.
As far as DevDosh Ltd concern, the scheme was introduced to help first time buyers and people at James Pendleton believes this is actually hurting first-time property buyers in the UK.
The average London property is now £482,779 (according to Land Registry in April 2017), but the average price of flats in some areas is already far in excess of that.
Lucy Pendleton, co-founder, and director of James Pendleton estate agents said: “Artificially high demand in this price zone just beneath £600,000 will be forcing many to pay over the odds.
“By introducing a Help to Buy threshold and axing stamp duty slab tax, the government has simply replaced one disruptive line in the sand with another.
“These hurdles placed at arbitrary price levels have always had a distorting effect on the market and that’s what we are seeing now, smack bang in the middle of the cost of many one- and two-bed flats for young professionals, which is a crucial price point for first-time buyers in these areas.”
Attributed to James Pendleton Estate Agents
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