Are some HTBers planning to sell after the 5 year period?

[Si1]

31 minutes ago, Freki said:

It's explicitly in breach of HTB TnCs, you have to buy the portion left first. 

Also remortgaging seem difficult for HTB owners. Maybe it has to do with the down valuation the place receives and the gvt unwillingness to accept it

As Peter Schiff so often alludes - you cannae change the laws of economics. Market mechanisms will tend to try to assert themselves some point down the line.

[Travisher]

On 24/02/2019 at 11:21, crazypabs said:

There are two types of htb

https://www.helptobuy.gov.uk

1-Equity loan: gov owns the property with you and shares hpi increases or decreases

2-Shared ownership: gov buys a portion of the property and rents it to you. 

There is more to the schemes but this is the high level overview.

I think, like student loans the govt intends to sell the loan book to a private company. This means you have to get permission to sell from the owner of the loan book. Given the clauses on resale value, the book owner may not be too keen on letting you sell if the market has fallen.

[modavid]

Planning to sell alright but to whom? ?

No one in their right minds would touch a 5-year old "new build" unless it's available at a significant discount compared to other properties. The government has a second charge on the property and are unlikely to accept a significantly lower valuation.

The original HTBer will likely be stuck with the property I think.

[Flopsy]

It did work here for some in Milton Keynes. Not sure for how much longer though as sales seem to have almost stalled.

I've been watching some target areas to try and work out what is happening with prices for the past few years. Prices went up so quickly we were priced out of the areas in Buckinghamshire and Bedfordshire we initially looked at buying in and we have had to rent. 

A couple of new build suburbs in my target areas have had houses sold after the 5 year mark and HTB was used in this area.

For 3 bedders it seemed easy to get the sales (before 2019). We went to look at a few. Some owners were selling up to buy in older established areas closer to schools. One was selling a new build and buying a larger new build using HTB again!

The 4 bedders though seem to be harder to shift but owners just took them off the market. There doesn't seem to have been any urgency.

I've been following the sales on Land registry and up to 2018 3 bedder houses were reselling at around the prices of similar older established homes. The people who bought at the start of HTB have in many cases offloaded these properties onto other buyers.

I'll keep watching Land registry to see if any of the property which have gone "under offer" so sell and at what prices. There is one 4 bedder, that if it sold at the (dropped) asking price should finally force down the price of a 3 bedder.

Edited February 25, 2019 by Flopsy

[modavid]

49 minutes ago, Flopsy said:

It did work here for some in Milton Keynes. Not sure for how much longer though as sales seem to have almost stalled.

I've been watching some target areas to try and work out what is happening with prices for the past few years. Prices went up so quickly we were priced out of the areas in Buckinghamshire and Bedfordshire we initially looked at buying in and we have had to rent. 

A couple of new build suburbs in my target areas have had houses sold after the 5 year mark and HTB was used in this area.

For 3 bedders it seemed easy to get the sales (before 2019). We went to look at a few. Some owners were selling up to buy in older established areas closer to schools. One was selling a new build and buying a larger new build using HTB again!

The 4 bedders though seem to be harder to shift but owners just took them off the market. There doesn't seem to have been any urgency.

I've been following the sales on Land registry and up to 2018 3 bedder houses were reselling at around the prices of similar older established homes. The people who bought at the start of HTB have in many cases offloaded these properties onto other buyers.

I'll keep watching Land registry to see if any of the property which have gone "under offer" so sell and at what prices. There is one 4 bedder, that if it sold at the (dropped) asking price should finally force down the price of a 3 bedder.

Interesting ..guess it depends on the room sizes and layout as well .I have seen 3 beds having larger room sizes and better layouts than 4 beds in my area.

I wrote this in another post, I've already seen prices in London Zone 5 fall 10%+ in the last six months whereas sales volume has dropped significantly. I personally know a couple of colleagues that pulled out of buying at the last minute only for the seller to counter offer 5% below the agreed price.

[Flopsy]

On 25/02/2019 at 21:57, modavid said:

Interesting ..guess it depends on the room sizes and layout as well .I have seen 3 beds having larger room sizes and better layouts than 4 beds in my area.

I wrote this in another post, I've already seen prices in London Zone 5 fall 10%+ in the last six months whereas sales volume has dropped significantly. I personally know a couple of colleagues that pulled out of buying at the last minute only for the seller to counter offer 5% below the agreed price.

Newbuilds in Milton Keynes and Leighton Buzzard and other areas I have looked at don't vary much. The developers are trying to put as many new houses as possible into the space so the room sizes and designs don't change. 

The 4 bedders if they are on 2 floors have a larger footprint and so the kitchen in particular is bigger. Most of the new 3 bedders would struggle to have any dining table let alone family size table and chairs in the kitchen or even enough cupboard storage space. The lounge struggles with a large table as well. We have a niche in our (rented newbuild) lounge but if used the chairs stick out into the main area.

When I lived in London a proper family kitchen was a luxury but I am surprised that new builds in Beds and Bucks are also going that way as well. 

There are 4 bedders over 3 floors and these return the same small kitchen as the 3 bedders but with potentially larger families. Cupboards aren't built in as well and some of the bedrooms are ridiculously small.

Edited February 27, 2019 by Flopsy