12 Jan

Help to Buy scheme continue to be popular

Help to Buy scheme continue to be popular

People are continuing to benefit from government supported Help to Buy schemes, according to new figures.

The latest data from the department of communities and local government (DCLG) shows that more than 73,000 buyers have made use of the initiative to purchase a home.

Since the Help to Buy scheme was launched nearly two years ago, the average mean purchase price was £211,566, with Wiltshire leading the way in completed sales.

Leeds, Central Bedfordshire, Milton Keynes, Peterborough and Birmingham have also showed strong use of the scheme - highlighting that areas outside of London and the South East have benefitted despite lower regional prices.

DCLG data showed a total of 30,269 households purchased new and existing homes through the Help to Buy mortgage guarantee scheme and a further 5,518 households were helped to acquire a new build home through the NewBuy scheme.

"Our long term economic plan has turned this country around from the one we inherited, suffering from a crashed economy and a housing market where builders wouldn’t build, lenders wouldn’t lend and buyers couldn’t buy," said housing and planning minister Brandon Lewis.

He added: "Now numbers of first time buyers are at their highest since 2007, house building continues to climb and planning permissions are at record levels."

Under the equity loan scheme, buyers are only required to put down a deposit of five per cent on a new home and then take out a mortgage of up to 75 per cent of its value. The difference is funded with an equity loan from the government.

The chancellor's recent budget confirmed this equity loan part of the Help to Buy scheme in England will continue to 2020 rather than ceasing in 2016 - largely due to its popularity with the public.

It is expected the second part of the Help to Buy scheme - the mortgage guarantee scheme - will still stop at the end of next year.ADNFCR-1222-ID-801769807-ADNFCR

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