A Help to Buy ISA is opened every 30 seconds

A Help to Buy ISA is opened every 30 seconds. That's more than 3,000 new accounts a day!

According to the Government, a quarter of a million first-time buyers have opened a Help to Buy ISA since the scheme launched on 1 December, 2015.

And this week, the first buyers have claimed their Help to Buy bonus, where the Government tops up every £200 saved with £50.

With the average UK home now costing £283,020, many aspiring buyers are struggling to ringfence enough money to put down as a deposit.

Launched by Chancellor George Osborne at last year’s March Budget, the Help to Buy ISA is designed to help first-time buyers save money.

It is clearly good news for all first-time buyers. The ISA has proved particularly attractive with savers aged 30 and under, who make up 75% of the 250,000 buyers that have taken out the product since launch.

Meanwhile, 10% of first-time buyers that have opened a Help to Buy ISA are in the north west of England.

Like conventional ISAs, the new product allows first-time buyers to earn interest on savings tax-free. They can put away up to £200 a month in the Help to Buy ISA, and the Government will top it up by 25%, up to a maximum of £3,000.

There are 14 providers currently offering the Help to Buy ISA. And now Chorley Building Society has confirmed it will join them from 8 February, 2016.

The Help to Buy ISA is part of the Government’s wider Help to Buy initiative to help boost home ownership. Other elements of Help to Buy include an equity loan, mortgage guarantee and an equity loan specifically for new-build homes in London – launched this week.

Osborne said: “Last year I announced further help for first time buyers with the new Help to Buy ISA and I’m delighted that a quarter of a million people have already taken advantage. It is all part of our plan to back working people who are doing the right thing and saving for their first home.”

Landlord possessions reach record high

The total number of evictions last year reached a record high of 42,728 according to data from the Ministry of Justice. 

Whilst overall possession claims fell during the year to 148,043, the number of accelerated possession cases continued their upward trend reaching 37,663 in 2015, up 4.5% on the previous year and up 10.5% on 2013.

The rise in evictions and use of Section 21 accelerated possession procedures is a stark insight into the severity of the UK’s housing shortage. 

Rising rents and welfare cuts are undoubtedly to blame for the growing number of evictions. With a shortage of affordable properties, particularly in the capital, the imbalance of supply and demand has pushed rental inflation well beyond the levels at which tenants’ wages have risen.

According to the MoJ, the proportion of claims made using accelerated procedure has increased from 7% in 1999 to 25% in 2015. 

Rising house prices, uncertainty over future buy-to-let tax implications and concerns over increased legislation such as Right To Rent and the Deregulation Act (England) have been the catalysts for many self-managing landlords to consider selling up or using a professional agent. They use Section 21 as a way to gain possession of their property as quickly as possible.

In other circumstances, where tenants are in arrears, Landlord Action says many landlords still opt to use a Section 21, instead of Section 8.  

Some landlords feel they won’t be able to collect rent arrears so this allows them automatic right of possession without having to give any grounds once the fixed term has expired. Other landlords are being forced down the Section 21 route because local councils are advising tenants to remain in properties until a possession order has been granted by the courts: this means they can apply for re-housing and do not make themselves voluntarily homeless.

A section 21 usually enables landlords to gain possession much quicker on a no-fault basis, so they can re-let the property, which is often more financially viable than chasing arrears. We believe use of the Section 21 process for landlords will continue to grow year-on-year because of councils’ pushing the problem back onto private rental sector landlords.

YOUR AGENT Comment.

If you are a landlord who does not want to go through these onerous processess then why not let YOUR AGENT be your agent? And let us take the hassle out of managing your property and let us help you avoid the pitfall of property management.

Renting Homes Bill receives Royal Assent.

The Renting Homes Bill passed its final stage (3) at the  National Assembly for Wales in November and gained Royal Assent on 18th January 2016. The legislation will replace the different types of tenancies and licences currently available in Wales with just two main types of contracts - one for the private rented sector and one for social housing. 

Once implemented, the Act will require landlords to issue a written statement of the contract which clearly sets out the rights and responsibilities of landlords and tenants.

A minimum six-month occupation period will be maintained by the Act (with some exemptions) and landlords will have to ensure the property is fit for human habitation, the details of which will follow. The Act will also help protect people from retaliatory eviction sometimes seen in the private rented sector for complaining about the condition of a property.

This is one of the most significant pieces of legislation to be passed by the National Assembly for Wales directly affecting the lives of over one million people who rent their home in Wales.

The Welsh Government will be issuing consultation on various regulations over the next year and throughout the implementation stage.

To view the act, please visit:-
http://www.legislation.gov.uk/anaw/2016/1/contents/enacted