Over 134,000 homes purchased through Help to Buy

The latest DCLG Help to Buy statistics show that since the launch of the Help to Buy: Equity Loan scheme in April 2013, 134,558 properties were bought with an equity loan.

Related topics:  Finance News
Rozi Jones
29th September 2017
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"These statistics highlight the fundamental role Help to Buy has played since its introduction in 2013"

The total value of these equity loans was £6.72 billion, with the value of the properties sold under the scheme totalling £32.37 billion.

Most of the home purchases in the Help to Buy: Equity Loan scheme were made by first-time buyers, accounting for 81% of total purchases.

The mean purchase price of a property bought under the scheme was £240,530, compared with a mean equity loan of £49,963.

In London, the maximum equity loan was increased from 20% to 40% from February 2016. Between then and June 2017, there were 4,586 completions in London, of which 3,487 were made with an equity loan higher than 20%.

Craig Hall, New Build Manager, Legal & General Mortgage Club, commented: “These statistics highlight the fundamental role Help to Buy has played since its introduction in 2013, helping 81% of first-time buyers onto the housing ladder in Q2 2017 – an increase of 26% year-on-year. All of this evidence points to a scheme continuingly being utilised by the borrowers, and this is clearer still in the capital, where London’s Help to Buy scheme was used by 96% of all first-time buyers, with 60% using it at its highest equity loan of 40%.
 
“However, as many are aware, the future of the scheme is currently under review, causing uncertainty for developers, lenders and borrowers alike. Although the Government is committed to Help to Buy until 2021, there are genuine concerns the current allocated funds will run out prior to 2021, which is impacting on long-term planning for developers and those lenders that are considering entering the Help to Buy market. The additionality review, which is also taking place simultaneously, is also creating further caution amongst stakeholders.
 
“With the summer break over and General Election now a distant memory, we need the Government to make its decision on the future of Help to Buy sooner rather than later. More uncertainty about the scheme post-2021 will only impact on developer and lender support, impacting on a scheme which has undoubtedly helped thousands to meet their goal of homeownership.”

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