Figures from the Group, which has completed on a number of Help to Buy purchases already, show that 86% of applicants are first-time buyers, the average age of a purchaser is 31 and the average loan size is just over £145,000.
That said, Help to Buy 2 has some way to go to ensure applications are evenly distributed across the country with 70% concentrated in the South and Central regions of the UK. According to Connells Group figures, only 16% of its Help to Buy 2 applications have been for properties in the North of England, a figure which falls to just 8% in the Midlands.
Group Mortgage Services Director Adrian Scott said:
“In spite of all the speculation and some criticism of Help to Buy so far, initial figures show that first-time buyers are the main benefactors, and they are purchasing averagely-priced starter homes. Although it is too soon to say how this phase of the scheme will play out in the long run, these first applications and completions using Help to Buy show that it is helping first-time buyers purchase their first property.”
The early launch of Help to Buy 2 has boosted buyer confidence in the market generally. Indeed, Connells Group recorded a surge in mortgage applications in November recording a 39% increase in first-time buyer applications last month compared to the same month last year, and a 32% increase in applications overall.
Alongside mortgage applications, since the start of the year the Connells Group has recorded a 29% increase in the number of prospective buyers registering an interest with its branches and online compared to the same period in 2012. Additionally, there has been a 21% increase in viewings on properties with buyers having to make faster decisions on homes for sale as demand continues to outstrip supply.
“The impact of both Help to Buy schemes has been two-fold,” Adrian continues. “Our estate agency business has seen a lot more activity from buyers, especially with news of rising house prices but we are also now seeing applicants who are using Help to Buy and getting genuine benefit from it. We would now like to see more Help to Buy applications in the Midlands and the North of England to ensure as many people as possible can use the scheme.”
