New figures published today reveal over 24,500 households have bought new build homes through the Help to Buy: equity loan and Help to Buy: NewBuy schemes. There have also been over 2,500 sales through Help to Buy: mortgage guarantee.
Mr Hopkins said today’s figures were clear evidence that Help to Buy is creating a new generation of homeowners and supporting the construction industry, which is building more homes in response to growing demand.
Over 87% of completed sales under the equity loan, and 82% under the mortgage guarantee, have gone to first time buyers, while the average price of a home was £185,000 under the equity loan and £148,000 under the mortgage guarantee: far below the national average.
The latest statistics show starts on new homes in 2013 were at a 6-year high and climbing, with starts on homes for private sale up 29% since the launch of Help to Buy: equity loan, compared to the same period the year before.
Sales of new build homes have been strong across the country - for the equity loan the highest number of completed sales were in Leeds with 337, Wiltshire with 316 and Central Bedfordshire with 287. For Help to Buy: NewBuy the highest number of sales were in County Durham with 110, Gateshead with 84 and Basingstoke and Deane with 83
Kris Hopkins said:
"Thousands of people have now achieved their dream of becoming homeowners through Help to Buy. Hard working families are getting the homes they want, while housebuilding is at its highest level since 2007 and climbing."
"It’s clear evidence our long-term economic plan is working. But there is still more to do, and we will continue to prioritise resources to improve the housing market."
Richard Sexton, director of e.surv chartered surveyors, commented:
“A year on, Help to Buy has helped turn the mortgage market around, with the equity loan scheme assisting almost 20,000 aspiring home owners to get onto the property ladder. Just twelve months ago, many prospective home-owners found themselves stuck on the side-lines of the property market, unable to raise the deposit they needed to make the first move into the arena. Help to Buy has provided the solution, and nine out of ten of those who have benefitted have been first-time buyers. In fact, March this year saw the most first-time buyer sales since before the recession struck.
“Buying a house is becoming a much more attainable aspiration for many. One in six loans are now to high loan-to-value borrowers, as high LTV mortgages have become more accessible and rates have remained relatively low. But there are still challenges to be resolved.
“The equity loan scheme has increased appetite for new build property, but there is still a shortfall in housing stock. This has led to increased competition between buyers, which has been pushing prices upwards. To counter this, more construction is needed to satisfy the demands of prospective buyers. Planning regulations should be eased, and builders given more support and incentives to facilitate the necessary vision of a new-build future.”
