According to statistics released by the government, almost 100,000 people have been able to buy a new home through the Help to Buy scheme since it was first implemented.
The Help to Buy equity loan and mortgage guarantee schemes were introduced in 2013 to help people who can pay for a mortgage but can’t afford the high deposits expected by lenders. This means that, rather than needing a 10 - 20% deposit, buyers can now afford to buy with just a 5% deposit.
Around 94,000 people have now been able to buy a property under Help to Buy, 80% of which were first time buyers. The figures also revealed that more than half of the completions were under the 95% mortgage scheme for those buying a new-build property, bringing the total number of new homeowners to almost 100,000 (99,601).
Good news for new homeowners
This number is expected to rise further when the government’s Help to Buy ISA launches this autumn. Buyers saving for a deposit can receive £50 from the government for every £200 saved - up to a £3,000 bonus towards a new or bigger home. The Treasury also confirmed Help to Buy will be extended to 2020, giving even more people the chance to own their own home.
Our chief executive Andrew Weaver says: “It has been extremely difficult for people to buy a first time or bigger home. Help to Buy has made this possible with just a 5% deposit. It’s great to hear the schemes have been a success. The introduction of the ISA and extension of the scheme to 2020 promises to make it even easier for homeowners."
Other highlights from the statistics included:
· The average house price was £184,000, significantly below the national average
· 95% of Help to Buy completions took place outside of London
· In 2014 private housing starts in England increased by 8,660 with annual housing starts at a seven year high and 443,410 new private homes being built in the UK since April 2010
· Over half of homes bought under the scheme were new-build properties.
Read our blog on Help to Buy or call us to find out more. We have experienced mortgage advisors available to discuss the best financial option for you.