City housing market gets a KICKstart

A CONSORTIUM of solicitors that specialise in property have pioneered a scheme to help boost the housing market by helping first-time buyers take their first step on to the property ladder.

The KICKstart scheme is the brainchild of five solicitor firms in Edinburgh and the Lothians: Drummond Miller, Leslie Deans & Co, the Lints Partnership, Neilsons and Warners.

The firms, which collectively make up the Edinburgh and Lothian Property Guide, will showcase a range of fixed-price properties and for every completed sale the purchaser will get a three per cent cashback deal to help towards other costs.

It is aimed at first-time buyers who have been struggling to borrow money because lenders have imposed stricter criteria amid the credit crunch.

In April, Abbey became the last of the major UK high street lenders to withdraw 100 per cent mortgages from the market.

It meant that buyers would need to first secure a deposit of at least five per cent of a property's value before being able to buy it.

And while city house price growth is slowing as the credit crunch tightens its grip, economic conditions have only had a slight impact on the luxury homes market.

Speaking on behalf of the ELPG, Leslie Deans, owner of Leslie Deans & Co, said: "For properties at the mid to high end of the market there is no evidence that the credit crunch is having an impact on prices.

"The weakness in the market currently is with sales of entry level properties. Property in Edinburgh is expensive and even before the credit crunch it was difficult for first-time buyers to get their first foot on the property ladder.

"The withdrawal of 100 per cent mortgages has meant that sales activity at the entry level of the market has slowed considerably. That's why we believe the KICKstart scheme is vital."

The scheme means that if a property is on the market with a fixed price of 150,000, the cashback offer would be 4500.

The money can be used to ease general cash concerns or to recoup the sum spent on a deposit.

Using the scheme, the ELPG, which accounts for 26 per cent of all sales in the Edinburgh area, also believes that it will be able to "kick-start" the entire housing market by creating a chain reaction where sellers move up the property ladder. "The KICKstart initiative, together with the recent announcement by the ESPC of a new 100 per cent mortgage to the market, will give a considerable boost to the entry level sector," said Mr Deans.

"It will allow first-time buyers access to funding to make their first purchase less of a financial burden and it will release owners of entry level properties to move up the property ladder."