News & Legal Updates
Sign up to news & legal updates
Apologies for the length of time since the last blog which has been caused by pressure of work and holidays. I will give you my summer update on the property market shortly. In the meantime I have been interested to read reports regarding the Help to Buy Scheme.
The Scottish Government Scheme has run out of money and lenders are now pulling away from the UK supported Help to Buy Scheme. The influential economic body the OECD has now called for the Scheme to be brought under control with a new lower limit on lending. The OECD would like this Scheme to be scrapped altogether.
Whilst I agree that there needs to be some tightening up of the criteria I am against the Scheme being withdrawn altogether at this stage. I do think that the UK property prices are being distorted by the London property market – UK property rose 10.5% in the past 4 months compared to 20.1% in London. It also has to be noted that in London most properties are purchased without mortgages or at least with very low loan to value mortgages and thus any property bubble that is happening in London will have little or no impact on the banks should it burst.
I do think that there is a struggle for first time buyers to get on the market and as I have argued before first time buyers are the life blood of the property market in particular and the whole economy in general. I also feel that whilst matters have improved there still needs to be more support for developers both via funding and planning controls to increase the number of properties that are being built.
In conclusion my opinion is that the Government should continue with the Help to Buy Scheme but perhaps restrict it geographically to areas outwith London and also put a cap on the price of transactions that would be supported.
Summer update to follow.Lindsay DarrochPartner – Head of Property
The opinions expressed in this site are of the author(s) only and do not necessarily represent the opinions of Blackadders LLP.
Blackadders takes all reasonable steps to ensure that the content of this site is accurate and up to date. The site is not, however, intended as a substitute for seeking legal or other professional advice but rather as an informative guide to the services provided by Blackadders and topical legal developments. Site visitors should always seek advice tailored to their specific situation. Consequently, Blackadders accepts no responsibility for any loss or damage suffered by anyone acting or failing to act on the basis of information contained on this site. Downloading of material contained on this site is at the user’s own risk and all necessary virus checks must first be carried out by the user. Blackadders is not responsible for the material found on any web sites linked to this one and links to this site may only be made with Blackadders prior consent.
Blackadders owns the copyright in this blog and all material contained on it. The material on this site may be downloaded for personal use only and must not be altered. Otherwise, Blackadders’ written consent is required before any material on this site is reproduced, copied or transmitted in any way.
Information passed to us via this site is kept confidential and will not be disclosed to third parties except if authorised by you or required by law.
© Blackadders LLP 2011
Members of the Law Society of Scotland. Authorised to conduct Investment Business under the Financial Services & Markets Act 2000 by the Financial Services Authority.
Blackadders Solicitors is a trading name of Blackadders LLP, a limited liability partnership, registered in Scotland No SO301600 whose registered office is 30 & 34 Reform Street, Dundee, DD1 1RJ. Reference to a ‘partner’ is to a member of Blackadders LLP.Back to News & Legal updates