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Help to Buy homeowners are now being hit harder than most

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THE GOVERNMENT’S Help to Buy scheme “went on too long” and we will “all be left paying the price”, a leading property association warns today. 

Rising numbers of first-time buyers who purchased using the Help to Buy equity loan scheme are increasingly finding themselves struggling to make repayments. 

Under the scheme, which closed in March, buyers could purchase a new-build home with a 5% deposit and a 20% government-backed equity loan, or 40pc for those in London. 

This loan was interest-free for the first five years. 

After that, interest is charged at 1.75pc – a rate that then increases by a measure linked to inflation.

But the surge in costs is starting to push first-time homeowners to breaking point. 

Many are trying to downsize, a position most would never have predicted when taking their first step on the property ladder.

Commenting on the growing crisis which many homeowners are facing as a result, Jonathan Rolande of the National Association of Property Buyers, said: “Homeowners who took advantage of Help to Buy loans are now being hit harder than most. Help to Buy stimulated growth and job creation not long after the financial crash of 2008 when the market was still very fragile. 

“However, it resulted in a great transfer of wealth from the government and borrowers to property developers. Asking prices, builders’ profits and share prices rose quickly, creating some of the ingredients of today’s inflation, interest rate and house-price difficulty.

“The scheme was generous and it went on too long, artificially propping up the new-build sector. In the end it looks like we’ll all be paying the price.”

Outlining the wider problems across the sector, Mr Rolande continued: “Just about everyone who has anything to do with property has been affected by the rise in interest rates and the fall in prices over the last 12 months, but new home owners more than most.

“This is because much like a new car, new homes invariably lose value once occupied. The fittings such as carpets and kitchen appliances aren’t new and often, as the developer looks to exit, discounts are applied to the last remaining properties that bring down the values on the whole development.” But Mr Rolande said he doesn’t feel the Government should intervene.

He said: “No, interventions shouldn’t happen. This is no scandal as we have seen with, for example, cladding or mis-sold mortgages. Buyers were aware of the costs and the risks and in many cases, the properties are still worth more than was paid – the market has risen for four out of the last five years.

“If owners made money on the purchase, it would be a tax-free gain – in my opinion, the taxpayer shouldn’t have to step in to assist with the losses when it would see nothing of the gains. 

“Mortgage holders will, like non Help2Buy owners, benefit from lender forbearance, instigated by the government. This should be the limit of state interference.”

 

Business

Pub rate relief welcomed but closures still feared

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CAMRA warns one-year discount is only a sticking plaster as many Welsh locals face rising bills

A BUSINESS rates discount for Welsh pubs has been welcomed as a step in the right direction — but campaigners warn it will not be enough to stop more locals from shutting their doors.

The Campaign for Real Ale (CAMRA) says the Welsh Government’s decision to offer a 15 per cent reduction on business rates bills for the coming year will provide short-term breathing space for struggling publicans.

However, it believes the move fails to tackle deeper problems in the rating system that continue to pile pressure on community pubs across Wales, including in Pembrokeshire and Carmarthenshire.

Chris Charters, Director of CAMRA Wales, said: “Today’s announcement from the Finance Secretary that pubs will get 15% discount on their business rates bills is a welcome step.

“However, many pubs still face big hikes in their bills due to the rates revaluation which could still lead to more of our locals in Wales being forced to close for good.

“15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.”

He added: “Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”

Mounting pressure on locals

Under plans announced by the Welsh Government, pubs will receive a temporary discount on their rates bills for the next financial year.

But CAMRA argues that many premises are simultaneously facing sharp increases following the latest revaluation, which recalculates rateable values based on property size and trading potential.

For some smaller, rural venues, especially those already operating on tight margins, the increases could wipe out the benefit of the relief entirely.

Publicans say they are also contending with rising energy costs, higher wages, supplier price hikes and changing customer habits since the pandemic.

In west Wales, several long-standing village pubs have either reduced their opening hours or put their businesses on the market in the past year, with landlords warning that overheads are becoming unsustainable.

Community role

Campaigners stress that the issue goes beyond beer sales.

Pubs are often described as the last remaining social spaces in small communities — hosting charity events, sports teams, live music and local groups.

In parts of rural Pembrokeshire, a pub can be the only public meeting place left after the loss of shops, banks and post offices.

CAMRA says supermarkets and online retailers enjoy structural advantages that traditional pubs cannot match, making it harder for locals to compete on price.

The organisation is now calling on ministers to introduce a permanently lower business rates multiplier for pubs, rather than relying on short-term discounts.

Long-term reform call

CAMRA wants whoever forms the next Welsh administration to commit to fundamental reform of the rating system, arguing that pubs should be recognised as community assets rather than treated like large commercial premises.

Without change, it warns, the number of closures is likely to accelerate.

Charters said: “This is about protecting the future of our locals. Once a pub shuts, it rarely reopens. We can’t afford to lose any more.”

For many communities across west Wales, the fear is simple: temporary relief may buy time — but it may not be enough to save the local.

 

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Business

Haworth Autobody earns Which? Trusted Trader status

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Family-run repair centre praised for workmanship, transparency and customer care

A FAMILY-RUN vehicle repair business has been recognised for its high standards of workmanship and customer service after securing national accreditation from Which? as a Trusted Trader.

Haworth Autobody Ltd, based in Haverfordwest, has built a loyal customer base through years of careful, precision repairs and a straightforward, customer-first approach. To earn the endorsement, the company underwent a detailed independent assessment examining not only technical skill and repair standards, but also business procedures, complaint handling systems and verified customer feedback.

The Which? Trusted Trader scheme is widely regarded as one of the most robust consumer approval programmes in the UK. Successful applicants must follow a strict code of conduct and agree to ongoing monitoring, with only a small proportion of businesses achieving the status.

Owner Bobby Haworth said the accreditation reflects values the company has always tried to uphold.

“We’ve always believed that doing the job properly, being upfront with customers and standing by our work is the only way to operate,” he said. “To have that approach independently recognised by Which? means a great deal to us and gives customers extra confidence when they choose us.”

For motorists, the recognition offers added peace of mind at a time when trust and transparency in vehicle repairs are more important than ever. Customers can expect clear communication throughout the process, honest and detailed estimates, and repairs carried out to a consistently high standard.

The workshop handles a wide range of services, including accident damage repairs, paintwork restoration and cosmetic bodywork, with an emphasis on quality workmanship and attention to detail.

Mr Haworth said the endorsement was not a finishing line but a foundation for continued improvement.

“We’re continuing to invest in staff training, modern equipment and new techniques to make sure standards stay high as we grow,” he added.

With consumer confidence increasingly tied to independent verification and proven reliability, the latest recognition reinforces Haworth Autobody’s standing as a trusted name in local vehicle repair.


Haworth Autobody Ltd
Unit 7, Snowdrop Lane, Haverfordwest, Pembrokeshire SA61 1ET
Tel: 01437 779911
Mobile: 07723 011847
Web: www.habody.com

 

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Business

St Clears discount store in closing down sale after chain enters administration

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A WELL-KNOWN discount retailer in St Clears is advertising a closing down sale after its parent company fell into administration, raising fresh concerns about the future of another high street store in west Wales.

The Original Factory Shop, which trades from Pentre Road in St Clears, has launched an “up to 30% off” sale as administrators attempt to secure the future of the business.

The chain, which sells clothing, homeware, garden products, toys and everyday essentials, appointed joint administrators Rick Harrison and James Clark of Interpath Advisory last week.

Founded in 1969, the retailer operates 137 stores across the UK and employs around 1,180 staff.

In a statement, Interpath said the company had faced difficult trading conditions common across the high street, including rising costs, weaker consumer spending and increased employment expenses. It added that problems with a third-party warehouse and logistics provider had also disrupted sales.

Despite the administration, the joint administrators say all stores will continue trading for now while options for the business are explored. The company’s online store is set to close.

Rick Harrison, managing director at Interpath and joint administrator, said the retailer had long been a fixture in town centres across the country but had struggled in the current climate.

Over the coming weeks, administrators will review whether parts of the business can be sold or restructured.

However, signage and social media posts from the St Clears branch suggest uncertainty locally, with the store promoting a closing down sale and urging shoppers to “grab a bargain while stocks last”.

The St Clears outlet is one of the last remaining branches in west Wales. Stores in Fishguard, Haverfordwest and Milford Haven closed last year. The Cardigan branch is also understood to be running a similar clearance sale.

The loss of another discount retailer would mark a further blow for smaller town centres already facing reduced footfall and rising costs.

 

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