Residential conveyancing news: First-time buyers to get help with deposits

Posted 16/03/2011

First-time buyers in some areas who are hoping to use the services of a residential conveyancing solicitor may be able to do so sooner than they expected thanks to a new scheme introducing subsidies.

Under the Local Lend a Hand initiative, backed by the Lloyds Banking Group, some councils will provide subsidies of up to £70,000 to people looking to get a foot on the property ladder, a sum which will contribute to their deposit.

This will mean that purchasers may only have to pay out five per cent to cover a deposit on a property, allowing them to get better rates on a mortgage and afford the home more quickly.

Blackpool City Council, Warrington Borough Council, Northumberland County Council, Newcastle under Lyme Borough Council and East Lothian Council are the authorities currently taking part.

Sector Treasury Services director Cecilie Booth commented: “More people will be able to take the step of buying their first home, stimulating the local housing market and benefiting the wider local economy.”

Halifax figures state that the average house in the UK costs £162,657, with many lenders requesting deposits of more than £35,000 on 75 per cent loan to value deals.