The Scottish Government’s Help to Buy scheme has closed its doors to new applicants looking for funding in the current financial year.
In April the Government made available enough money to fund 2,000 home deals however, by July there were only 600 deals still available and it is believed that the majority of these deals will already be earmarked for applicants who have been active during July.
Any new applicants will need to wait until the next financial year, starting in April 2015, to apply to the scheme for help unless the Government announces any interim measures for additional funding this year.
The market is buoyant
The demand for funding from the Government’s scheme demonstrates improved confidence at the lower end of the market from first time and second time buyers.
This is backed up by the latest data released from the Council of Mortgage Lenders which shows lending to first time buyers increased in May to its strongest level since 2007 despite the introduction of stricter lending rules applied by banks and building societies.
Demand in Edinburgh & the Lothians
This is further evidenced by the strong performance in Edinburgh and the Lothians. ESPC has reported that the sharpest increase in sales during the last quarter has been seen in the market for smaller properties. The number of one bedroom homes sold has jumped by more than 50% annually which will have a positive impact on those further up the property ladder looking to move.
Property prices also increasing
ESPC also report that house prices are rising in most areas of East Central Scotland. In Edinburgh, the average house price now stands at £223,924 having risen by 3.9% annually.
Making a move
By all accounts, market conditions appear to be favourable for those looking to get onto the property ladder or move up the ladder. To find out whether now is the right time for you, why not ask us for a pre-sale consultation designed to help you understand the dynamics of the market in your area.