George Osborne announced yesterday the introduction of a government-backed mortgage lender guarantee in order to help house hunters who are struggling to find a deposit.
The guarantee will provide up to Â£130bn of lending between 2014 and 2017 in order to encourage lenders to provide high loan-to-value mortgages. It could continue to run beyond this with the Bank of Englandâ€™s agreement.
This will undoubtedly give a boost to property prices especially in the areas The House Crowd are buying â€“ these are the poorer areas where people are least able to raise a 20% deposit. Thatâ€™s good news in that it will give us better capital gains and make it easier to sell properties. Conversely, it will also make it harder to buy property after 2013 that will achieve double digit yields.
It is therefore our intention to capitalize on this announcement and buy as many properties as we possibly can in the next 12 months. If you want to maximize your returns, then the next few months presents the best opportunity for you to do so.