Research has found that 85% of estate agents believe it will boost sales by that amount in their region by stimulating the property market.
Also the survey by Move with Us also found that 86% believe the government was right to bring forward the scheme’s phase two mortgage guarantee from a launch that was originally going to be in January 2014.
A further 77% said that they think that the scheme will help increase sales during the typically quiet period in the housing market in the run up to Christmas.
However, according to the results, the government could have provided more useful explanatory information about the scheme with 45% of estate agents saying that the government hasn’t supplied them with adequate information about Help to Buy with calls for information on the risks as well as the benefits for customers.
In particular, estate agents are finding that people want more information about what will happen in five years’ time if Help to Buy owners decide to move and a step by step guide on how the scheme works.
‘Estate agents predict positive sales figures in response to the Help to Buy scheme but we are still waiting to see the overwhelming flooding of the market that some news reports anticipated. This could be down to the restricted lender participation in the scheme to date,’ said Robin King, director at Move with Us.
‘House prices are increasing naturally as we would expect in a recovering economy and it is likely the Help to Buy scheme will have a positive impact on property prices, generating more sales and creating more fluidity in the market,’ he explained.
‘As a result, we expect to see an increase in house price values of between 5% and 8% in some regions as we enter 2014, however, this will be very much dependent on the banks’ ability to lend on mortgages and to fulfil their commitments to government schemes. If more lenders get involved buyers will have more options and will be able to use these incentives to purchase their first home or upscale to larger properties,’ he added.
When asked about signs of a housing bubble, local, independent estate agent Adrian Woodcock from Woodcock Holmes in Peterborough said he is cautiously optimistic that the market is set for improvement with the Help to Buy scheme and that confidence is returning to prospective buyers.
‘We don’t believe the market is at risk of an over inflated housing bubble. We are still a long way from the market of 2007 and pricing the property correctly is still the key to achieving a successful sale,’ he added.
According to Andrew Willmer of Lane and Homes in Bedford there is no sign of a housing bubble in his area at the moment. ‘The local feeling is that people are waiting until next year and sounding out Help to Buy before they progress with their plans to purchase property but it’s actually a great time of year for sellers to put their house on the market and get ahead of the competition before the typical January rush,’ he explained.
