Tide turns in housing crisis
Thursday, 4 September 2008
THE number of first time buyers in the Magherafelt area is at its highest in three years, according to a local estate agent.
Shaun Burns, partner of estate agents Burns and Co. in the town, claims the housing market has never been better for those buying a home for the first time in the area due to falling prices.
The news comes in the wake of the latest government shake up of the housing sector in axing stamp duty for a year. Government officials hope the new initiaitive will improve the province's fledging housing market.
Properties costing less than £175,000 will not have huge stamp duty prices imposed on them for 12 months, giving first time buyers a breathing period in the current tough financial climate.
Mr Burns welcomed the news calling it "a small step in the right direction" and something that "could make all the difference" for those trying to step onto the unsteady property ladder.
“Everything helps and this step is certainly needed to help the housing sector at this present time. I wouldn't say the market is recovered or recovering but we have noticed interest going up in terms of first buys. There really hasn't been a better time for first time buyers to get onto the ladder and the number we have seen in the last while is more than its been in years."
Mr Burns attributed the huge interest from those new to the market to falling house prices and some "good deals" on offer.
“A lot of prices have already gone back, and developers are becoming more receptive of this. Hopefully this will encourage them to think more clearly about the first time buy situation. And its an incentive,prices are beginning to roll back to what they were in 2005 and that's definitely good news."
The real estate expert did admit however that more intervention was needed to help the housing market recover.
“I'd like to see more mortgage companies create more competitive deals for home buyers, its not that mortgages are difficult to get, its just that the ones out there aren't very good."
Social Housing still needed
Echoing Mr Burns remarks was Magherafelt District Councillor Oliver Hughes. The IRP member welcomed the latest stamp duty cut backs but says more changes, including the provision of more social housing, was still badly needed in the area.
“The removal of stamp duty for a short period certainly has to be welcomed. It's a small measure but hopefully it will allleivate some of the frustrations being experienced by first time buyers. But more changes need to be put in place, including making mortgages more easily available and providing more social housing. Irrespective of how much you move down stamp duty, people need to be first able to acquire a house before stamp duty comes into consideration, and that's still a big problem."
UUP Councillor for the Moyola area Jackie Crawford also called on more social housing for the District.
“Housing has been so expensive and the new stamp duty has to be commended. It's a great idea and will give first time buyers a chance but more council bills need to be on the governments agenda."
The new stamp duty means the threshold will be increased by £50,000. The announcement was made on the same day a new scheme to help first-time house-buyers was launched in Portadown. The project in Maghon Park is the first in the UK, which will see developers and housing associations shouldering 50 percent of the property's cost. The 127 properties are former Army houses which have been refurbished by Portadown-based developers Turkingtons.
The 24 detached houses and 103 semi-detached - are up for sale with prices starting at £145,000.
Under the 'Own a Home' scheme, buyers will be able to purchase 50 percent of the value of the house through a 100 percent mortgage from Barclays.
The bank is to offer would-be buyers mortgages for the remaining half of the price without a deposit.
The developer will pay 25 percent of the cost, with the remaining 25 percent provided by either of two local housing associations, Clanmil Housing and the South Ulster Housing Association.
