LETTING & ESTATE AGENT

Local Agent welcomes tax cuts for first time buyers in South Cheshire

Local Agent welcomes tax cuts for first time buyers in South Cheshire
The new scheme, to be launched in the autumn, will enable home buyers to save for their deposit through an ISA . with the Government providing a 25% top up.

Shaun, whose firm have offices in Crewe and Nantwich, says that the Chancellor's announcement is particularly good news for South Cheshire property buyers:

“With the price of an average house for sale in Crewe now at £163,900 and Nantwich at £238,900, it means that many properties in our area will fall within the £250,000 limit set for the scheme on properties outside of London.

In simple terms, for every £200 saved via an ISA, the Government will top it up with an extra £50, providing that it is used to purchase a property. For example, £150,000 in this area could buy a family home which might require a 10% deposit of £15,000. This can now be achieved by the buyers saving £12,000 towards the deposit, and the Government's extra £3000 contribution taking it up to £15,000. A couple can have an ISA each, therefore it would be possible for the Government to have provided £6000.â€

The Chancellor described it as a “tax cut for first time buyersâ€, and Shaun agrees that it will help tackle the problems faced by those wanting to get onto the South Cheshire housing ladder:

“Rents on properties in Crewe and Nantwich are often bigger than a mortgage repayment, so the monthly cost of home ownership is not the issue.  However, the current mortgage criteria mean that the required deposits are bigger than they used to be, and that's where the problem lies. Low interest rates are good for those who already have mortgages, but they don't really help those saving towards oneâ€.

“We sell many of our more affordable properties to property investors at the moment, and they now outnumber first time buyers in parts of the local market. This new incentive will certainly be a help to people wanting to buy their own home, but we are still finding that demand outstrips supply in the more popular parts of the area, so that side of the equation needs looking at tooâ€.