My response to Zac Goldsmith’s visit to Colindale
“ The Conservatives’ idea of ‘affordable’ housing is a million miles away from the reality facing Barnet residents in housing need . So-called’ Help to Buy’ won’t come anywhere near helping meet the needs of Barnet residents who want to own their own home. The new scheme is not even limited to first-time buyers, who are forced to compete with existing home-owners with spare cash.
“You would need to earn double the average Barnet household income to qualify for the mortgage on a 2 bedroom flat at £420,000, the cheapest currently available on this development under Help to Buy – and according to their sales website, there are only two flats available at this price anyway.
“You need savings of at least £32,000 for the upfront payments, (whilst also paying for your existing housing costs until the development is completed) a deposit of £21,000, an arrangement fee of around £1,000, and stamp duty at £11,000.
“If you can put down the minimum deposit of £21,000 you would take on debts of £399,000. The mortgage element is £231,000 or about £1,300 a month, and most lenders want to see annual earnings of around £70,000 to lend that amount, way beyond most Barnet residents seeking their own home. The Government short term loan element is £168,000, but after the first five years the interest charges on that will be an additional £250 a month, all assuming interest rates don’t go up .
“It is clear that multi- millionaire Conservatives like Mr Goldsmith can have no idea of the financial pressures on ordinary Barnet families , for whom the prospect of buying a home with or without this scheme remains an unattainable dream”.