The Surge in Help to Buy Valuations: Meet The Company Well Positioned to Soak Up the Upcoming Wave

As we navigate through the intricate landscape of the property market, a significant shift is on the horizon. Over the next three years, an unprecedented number of Help to Buy valuations are set to come due — a staggering 150,000, to be precise. This surge, fueled by the culmination of five-year terms for early adopters of the Help to Buy scheme, marks a critical juncture for homeowners and the property market alike.

The Hidden Costs of The Equity Loan

A Help To Buy Valuation allows the government and an individual to understand the value of the property since purchasing the property. Most Help-to-buyers took out a government loan of up to 20% of the property value and will have two options upon the loan coming to an end.

1) Re-mortgage and keep the loan

2) Re-mortgage and pay off the loan

3) Sell

For points 2 and 3, a valuation and solicitor would be required and this can cost between £1,000-£1,500 in total. The Help-To-Buy Valuation costs worth £300-£500 depending on the value of the property and the solicitor redemption can cost £500-£1,000

The Financial Implications

The financial implications for those involved are noteworthy. With each valuation carrying an average cost of £1,000, encompassing both valuation and solicitor fees, homeowners are facing a substantial financial undertaking without realising it when it comes to redemption. It's not surprising to see a significant number of redeemers become stressed at the extra costs involved.

Mapping the Demand

In the dynamic landscape of the UK's property market, particularly under the Help to Buy scheme, certain local authorities have emerged as prominent hotspots, witnessing a high volume of first time buyer completions.

Leading the pack is Wakefield, where a remarkable total of 4,743 properties have been completed, reflecting a robust housing market. Close on its heels is Leeds, with an impressive 4,289 completions, underscoring its status as a thriving urban center. Wigan follows with a notable 3,041 completions, showcasing significant growth in its property sector. Birmingham, known for its vibrant urban landscape, has seen 2,974 completions, while Doncaster follows closely with 2,806, indicating strong regional market activity.

• Wakefield: 4,743 completions
• Leeds: 4,289 completions
• Wigan: 3,041 completions
• Birmingham: 2,974 completions
• Doncaster: 2,806 completions
• Coventry: 2,454 completions
• Bradford: 2,386 completions
• Newcastle upon Tyne: 2,380 completions
• Manchester: 2,254 completions
• Liverpool: 2,245 completions

These figures not only highlight significant regional growth but also underscore the impact and reach of the Help to Buy initiative across diverse UK regions.

A Decline in Demand Post-2026

Looking ahead to 2026, experts are anticipating a decline in demand for these services as Covid hit the market hard in 2021 completions and the government began withdrawing support for the scheme. This expected downturn is linked to the diminishing number of new Help to Buy agreements, as the scheme evolves and new forms of property assistance emerge. Consequently, the peak of these valuation requirements is a temporary yet impactful phase, signaling a pivotal moment for both the industry and homeowners.

Homemove: Simplifying the Process

In response to this burgeoning need, Homemove presents a streamlined, efficient solution. Recognising the complexity and potential stress of managing separate valuation and legal processes, Homemove offers a unique Help-To-Buy Redemption bundle which gives redeemers the opportunity to unify the process. This innovative approach combines both the Help to Buy valuation and solicitor services into one simplified package. It's a game-changer for homeowners, providing clarity, convenience, and cost-effectiveness.

Conclusion

In conclusion, the horizon of the UK's property market is marked by a significant juncture as we brace for the arrival of 150,000 Help to Buy valuations over the next three years. These valuations, stemming from the conclusion of five-year terms for early adopters of the Help to Buy scheme, represent not only a financial challenge for homeowners but also a critical moment for the surveying market as a whole.