The total value of mortgages supported by the scheme is £1 billion. Compared to total mortgage completions in each region, the scheme is supporting a higher proportion of mortgages in the North West and the East, and a lower proportion in London and the South East.
The mean value of a property purchased or remortgaged through the mortgage guarantee scheme is £151, 597, compared to a national average house price of £252,000.
Following the release of these statistics, challenger bank Aldermore - a member of the Help to Buy scheme - released figures showing that 63% of their HTB mortgage applicants live in the North West, Yorkshire & North East and South West.
Aldermore Bank Residential Mortgages Managing Director Charles Haresnape says:
“Today’s statistics from the Treasury, coupled with new figures from Aldermore, suggest that Help to Buy is helping those consumers who most need help to get on the housing ladder. This shows that the scheme is proving successful and fulfilling its original aims of helping first time buyers, those on low incomes and those outside of London and the South East.
“There has been much rhetoric on the scheme in recent weeks and the dangers of causing a housing bubble, but Help to Buy remains a small proportion of total sales in the housing market and has no real impact in London, which is seeing higher inflation. Lender affordability measures remain paramount and will naturally limit mortgage sizes, so we should see the pace of house price rises in London reduce somewhat.”
Jeremy Duncombe, Director at Legal & General Mortgage Club comments:
“Despite calls for the scheme to be reined in, these figures show that Help to Buy is aiding those who most need it. The majority of applications have come from outside London and from first time buyers, in areas where the local housing markets have not rebounded as strongly as in the capital. That so few applications are coming from London shows that Help to Buy is not the sole reason for the booming house prices here. The real issue that needs to be addressed is the lack of housing supply and the prevalence of cash buyers.
“Help to Buy 1 should encourage more house building, and this will be crucial if the recovery is to continue in the long term. By helping to stimulate demand for houses, the scheme will encourage builders to feel more confident about committing to building some of the 250,000 new homes this country needs each year. More houses will keep prices affordable and help prevent those on lower incomes from being priced out of the market.”
