Legal News

New research by Hometrack has revealed that house prices in three-quarters of postcodes across England and Wales rose by 4.4% in the last year, taking the average price of a home to £206,726.

In London, the average price of a home is now £422,860 – edging nearer to the £600,000 upper limit for properties to be eligible for purchase under the government’s Help to Buy scheme.

The report has also found that in the last year demand for homes has risen by 25% – while supply of new homes slumped to just 6%. In London, house prices have risen by just over 9%.

Critics of the Help to Buy scheme say it is fuelling a property bubble which is pushing up prices.

The scheme allows first-time buyers to spend up to £600,000 on a new home and put down deposits of just 5%, with cheaper mortgages on offer by lenders. Some housing experts say this could encourage first-time buyers to spend beyond their means.

The Hometrack report says the trend for increased demand and falling supply in the housing sector will continue into 2014, resulting in house prices rising further.

The Bank of England has called for a review of the £600,000 upper limit on properties eligible under the Help to Buy Scheme, which also offers help to existing homeowners wishing to buy a larger property. The Bank has suggested the upper limit needs to be reduced to help calm the housing sector.

Lenders are also calling for an exit date for Help to Buy to be set – and some are asking homebuyers to put down larger deposits of 6-8%, as part of tougher credit scoring tests for borrowers.

Duncan Lewis Housing Solicitors

Duncan Lewis is a leading firm of housing solicitors and can advise on a wide range of housing matters, including:

• Debt
• Disrepair of rented property
• Housing benefit
• Landlord & Tenant disputes
• Local Authority housing
• Mortgage repossession
• Property possession
• Unlawful eviction.

For expert legal advice on housing matters, contact Duncan Lewis housing solicitors on 020 7923 4020.