New homes sales giant JLL has told The Negotiator that 32% of the reservations it receives for new-build properties are generated buy Help to Buy, underlining the importance of the sector to developers following the recent collapse of buy-to-let activity.
This follows the additional 3% Stamp Duty levied on investment properties and second homes, and the ongoing reductions in landlord tax allowances for mortgage interest payments.
The Help to Buy sector is now so important to JLL that it has set up a specialist team to hand-hold prospective buyers through the application and approval process, and help pin point the Help to Buy properties available locally.
The team will also work with developers to help them generate Help to Buy sales more quickly in this market, develop their strategies and increase values. The company currently has 11 development sites across London that can be bought via the scheme.
“Help to Buy has been an undoubted success, allowing over 150,000 buyers to step onto the property ladder so far, with the Government committing over £40 billion of support,” says JLL’s Head of Residential Andrew Frost (left).
“The scheme has been crucial to underwriting the supply of new housing and warrants specialist expertise to help facilitate more transactions.”
The new JLL team has a finite life to it – Philip Hammond announced in his Autumn Budget statement that one key Help to Buy scheme, its £22 billion Equity loans element, is to be scrapped in March 2023 while the other part, Shared Ownership, is due for an overhaul.