Should the Government even up the property playing field?
THE recent introduction of the Help To Buy ISA was designed to help people to take their first step on the property ladder
THE recent introduction of the Help To Buy ISA was designed to help people to take their first step on the property ladder.
But as local agents highlight, this won’t have much of an impact on Henley because of the steadily rising above-average house prices in this area.
“The government’s new Help To Buy ISA is in essence a good scheme that works for many parts of the UK. Unfortunately, it will have little benefit to people looking to purchase in the local area due to the limitations on saving combined with higher than average house prices,” says local expert Oliver Symons at the Henley branch of Ballards. “Looking forward, I am hoping to see further government policies that help purchasers in Henley on to the housing ladder.”
But those who do manage to get their finances to buy their first Henley home will then face another obstacle: the buy-to-let (BTL) property investor fighting to buy the very same two-bedroom flat.
Existing landlords looking to grow their portfolios, as well as those seeking to Â invest their cash thanks to Â the new pension shake up, now compete alongside first-time buyers for the same type of property. But is there room for both first-time buyers and those looking for BTLs?
Tim Peers at Peers Hilton thinks so: “I would suggest a way of creating a fairer market by forcing landlords who own five or more properties to sell just one to a first-time buyer.
“With current capital gains implications, there is little incentive to the investor with a portfolio to release these properties into the open market for sales purposes.
“Perhaps the Government should address the current imbalance by incentivising the investor to release property for purchase by genuine first-time buyers by removing or lowering the capital gains.”
Standard Property thinks he could be on to somethingâ?¦