Since the launch of the Help to Buy: mortgage guarantee, 79% of these were purchases by first time buyers. The total value of mortgages supported by the scheme is £12.8 billion.
Compared to total mortgage completions in each region, the scheme is supporting a higher proportion of mortgages in the North West and Scotland, and a lower proportion in London.
The mean value of a property purchased or remortgaged through the scheme was £156,873, compared to a national average house price of £216,000.
The median property value was lower at £138,000, reflecting a distribution where most properties are in the lower value bands. 58% of all mortgage completions through the scheme were on properties worth £150,000 or less. 10% of mortgage completions were made on properties valued at £250,000 and above. This reflects the fact that 95% of mortgage completions through the scheme have been on properties outside London, in regions where prices are typically lower.
Richard Sexton, Director of e.surv, comments:
“The increase in the number of mortgages completed through the Help to Buy Mortgage Guarantee Scheme is an indication that the UK housing market remains open for business. The fact that the majority of approvals were for first-time buyers also shows that the scheme is helping many borrowers to take an important first step towards owning their own home.
“However, while the scheme is important, it is still a drop in the ocean of what is required to get first time buyers onto the property ladder, especially in London. Help to Buy is clearly a welcome initiative, but it doesn’t tackle the UK’s chronic shortage of housing supply. Until this key issue is addressed, nothing will truly change.
“Demand is continuing to outstrip supply at a worrying level. The government urgently needs to build around 300,000 new homes a year to even out this imbalance, yet only 180,000 were built in 2015. Although the government has prioritised housing on its agenda, actions speak louder than words. If we want to see any real change in this area, we will need the government to work more closely with the industry to tackle this important issue head-on.”
