Money Management

Purchase assistance and stamp leave: the budgets of first-time buyers go further by combining government measures | Houses and properties


or over the next five months, first-time buyers can take a double whammy of government support to lower their purchase costs by thousands of pounds and lower initial deposit requirements to just five percent.

The stamp duty holiday runs until the end of March next year and there is no tax payable on properties priced under £ 500,000, saving up to reach £ 15,000.

Meanwhile, the government’s Home Buyers Assistance Program, which runs until 2023, helps new buyers without a huge amount of money behind them move up the property ladder.

In London, the program allows first-timers to spend up to £ 600,000 on a newly built property, with a minimum deposit of five percent. They can then take out a government equity loan of up to 40% and get a mortgage to cover the rest.

What this means, in real terms, is that if you spend £ 500,000 on a first home you will pay no tax and your minimum deposit is £ 25,000.

When it comes to lenders, between your deposit and your government loan, you deposit a large chunk of the property’s value, making you a safe bet to lend to (and access to great rates). interest below).

There are a lot of home choices available under the scheme, although £ 600,000 doesn’t go particularly far when it comes to new homes in the capital.

What are the disadvantages of purchasing assistance?

The real stumbling block is the loan. After five years, you start paying interest on your loan. The idea is that you will have a better job or a few pay increases over the course of five years, but in today’s economic climate, that just can’t be taken for granted.

If interest payments prove to be problematic, Help to Buyers has an option: As long as the property is worth more than they paid for, they can sell and take their share of any capital growth with them.

Last month, Savils predicted that the capital’s real estate market would grow 12.7% from 2020 to the end of 2024.

What you can get with Buyer’s Aid

North london

Photographer Jon Attenborough used Help to Buy to move into his first home in March – almost on the eve of the lockdown.

Jon, 41, only needed a 5% down payment to buy his apartment in Taylor Wimpey’s sold-out Eclipse development (, which is located in Blackhorse Lane, near Blackhorse Road station (zone 3.)

“I could only afford a house in London by using Help to Buy,” Jon said. “I liked the neighborhood and Taylor Wimpey had a beautiful building in the right place at the right time.”

At the right place at the right time: Jon Attenborough at his home in Eclipse, Blackhorse Lane

When the lockdown began, Jon’s neighbors set up a WhatsApp group so residents could stay in touch with each other.

“We try to help each other where we can by giving advice, sharing things with those in need and giving support in general,” he said. “The people have been great and there is a real sense of community.”

Buyers aspiring to a green lifestyle might consider a new launch the claves, in Mill Hill, where H2B is available on select one and two bedroom apartments for £ 425,000 and £ 600,000 respectively.

The properties are part of Millbrook Park, a new community of over 2,000 homes along with a new school, open space and stores. There are parks nearby as well as a gym, game room and screening room for residents. Mill Hill East station is a short walk away (Northern Line, Zone 4).

South London

You might think you would have a price out of Brixton but at the shop Two Three Seven Brixton Hill development, you can use H2B to purchase an open concept loft style apartment from £ 450,000.

A heat recovery system promises low running costs and residents can access a private garden; some apartments also have balconies.

Super-fast broadband is great for WFH, and little extras include a Sonos wireless sound system. Trains from nearby Streatham Hill station take a quick 18 minutes to Victoria.

London is

Take part in the £ 5 billion regeneration of Canning Town and the historic Royal Docks, which will eventually house 50,000 people. About 4,000 of them will live in Royal Albert Wharf, where 1,856 waterfront houses are being built, along with waterfront cafes and bars lining the quayside.

West London

The H2B is not strictly about large modern developments. Smaller systems may offer fewer onsite amenities, but tend to have lower service charges.

AT Warple Lofts, 10 high ceiling apartments are located in a Victorian building 800 meters from Acton Central Station (Zone 3, London Overground), convenient for Acton Park, Westfield and Chiswick restaurants and bars.

One-bedroom apartments start at £ 375,000 and two-bedroom apartments start at £ 575,000 (