Property Development News:- More than 2,000 Scottish households will be able to buy new-build homes with the extension of the help-to-buy scheme to March 2022, claims the government.
Scottish housing minister Kevin Stewart has pledged £55m for 2021-22, in a bid to help housebuilders recover business over the coming year.
The news coincides with first minister Nicola Sturgeon´s announcement yesterday of a soft start to re-opening housebuilding sites on Monday, June 15.
Mr Stewart said: “A strong and growing house-building industry is vital to Scotland’s future economic prosperity – and particularly as we plan our strategic economic recovery from Covid-19.”
Housebuilding trade body Homes for Scotland, HfS, said the announcement hadn’t come a moment too soon.
HfS chief executive Nicola Barclay said: “With pent-up housing demand having increased with every day that has passed, we look forward to finishing off the many homes that are already largely complete and that families are desperate to move into as well as starting to get the new homes that are so desperately needed out of the ground.”
The trade body had actively campaigned they should be allowed to finish off some 6,000 homes which were virtually complete before Scotland´s lock-down on March 24.
| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. |
1% -1.5%
Full fee added to
the loan. |
| Semi Commercial
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial
Including Light Refurbishment
|
Up to 70%
Lower of PP or MV |
0.75% pm | ||||
| Residential
Heavy Refurbishment
|
Up to 75%
Lower of PP or MV |
0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial
Heavy Refurbishment
|
Up to 70%
Lower of PP or MV |
0.83% pm | 0.83% pm | 0.7% pm | ||
“Having the extension of the help-to-buy scheme announced at the same time is also a much-required confidence booster for the housing market that will help ensure even more younger Scots can benefit from this hugely successful initiative and realise their aspirations of owning their own home,” added Ms Barclay.
Phased return of workers to housebuilding sites
Monday will mark the second stage of Scotland´s restart plan with workers following strict social distancing and hygiene controls.
Mr Stewart stressed:“I must reiterate, however, that easing restrictions will not mean returning to how things were before the virus.
“Physical distancing, hand hygiene, and other critical behaviours will be essential in each area to ensure public and workforce confidence.”
Ms Sturgeon said in yesterday´s briefing there was still “a long way to go” before construction would be back to normal. However, she added the government would review the situation on June 18th to see whether further restrictions could be lifted.
She praised the construction industry and trade unions for their responsible approach over an “incredibly difficult” time.
Property Development – Hank Zarihs Associates
Brokers Hank Zarihs Associates said property development lenders were available to offer a range of finance packages to support developers north of the border to get back on track.
Scotland began easing lock-down restrictions on May 29 when it said construction firms could prepare sites for re-opening as part of a six-phase route map back to work. Yesterday the government issued updated guidance for the construction industry.
Scotland´s help-to-buy scheme focuses on more affordable housing with a maximum purchase price of £200,000 with £15m ring-fenced support for buying homes sold by smaller developers.