Nick James, director of Moginie James
One of Cardiff’s leading estate agents has recorded its best start to a year in more than 10 years of business as consumer confidence in the housing market increases.
Moginie James has this week (17 April 2014) reported that sales in the first quarter of 2014 increased by 45% on the same period last year, but believes this is only, in part, down to government mortgage schemes.
Nick James, director of Moginie James, said: “We have enjoyed an extremely busy first quarter as confidence in the housing market returns. Despite the fact that mortgage stimulus schemes have been available in Wales since the start of the year, we think that this has only contributed slightly to the improvements in the housing market.
“We believe that the introduction of the Help to Buy and Mortgage Guarantee schemes by the Welsh Government have helped to improve overall confidence in the market, rather than being the reason for it, as the vast majority of our sales during this period were not under either scheme. We are seeing a lot more first time buyers and investors entering the market, and think this is largely down to low interest rates and a gradual return of confidence in the sales market.
“This upturn in the property market is a result of heightened activity at the bottom of the market place as the increase in new buyers has encouraged activity further up the ladder. This will prove to be vital if the recovery in the property market is to be sustained.
The Welsh Government introduced its long-awaited mortgage stimulus schemes on 2 January this year. There are currently two schemes available, namely Help to Buy Wales and the Mortgage Guarantee Scheme. Both schemes are available to first-time buyers and existing home owners provided they have a minimum of a 5% deposit.
The Mortgage Guarantee Scheme is available on new build and existing properties up to the value of £600,000, whereas. Help to Buy Wales is only available on new-build home to the value of £300,000. As a buyer on the Help to Buy Wales scheme, you will need a 5% deposit equal to the price of the property and the Welsh Government will fund a shared equity loan for up to 20% of the purchase price.
Nick James continued: “The problem that we are now seeing is that demand in popular areas is outstripping the supply. We are seeing a shortage of stock in areas like Penylan and Llanishen of properties for primarily aimed at second steppers and families in £250,000 – £400,000 price bracket.
Moginie James has four offices across Cardiff which specialise in residential sales, lettings, property management and the investment markets. For further information visit www.moginiejames.co.uk.
For more information on government mortgage schemes visit www.helptobuywales.co.uk.
