Business
Help to Buy homeowners are now being hit harder than most
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
Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure
PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.
The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.
The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.
A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”
Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.
Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.
From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.
Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.
(Photos: Martin Cavaney/Herald)
Business
52 homes to be built in Roch as scheme gets final sign-off
THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.
Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.
18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.
Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.
An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].
“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.
“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”
Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.
Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.
The Section 106 agreement was recently agreed, with the application now formally approved.
Business
World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners
AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently.
Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport.
The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site.
The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce.
SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal.
Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering. They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.
“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”
Poppy Sawyer, Year 8 SPARC learner added: ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”
“They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.
The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.
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