The UK government has so far delivered equity loans worth £941 million for the supply of new homes via the first phase of Help to Buy, since the scheme’s debut in April 2013.
However, over the same fourteen month period, gross lending via the bridging loan industry has totalled £2.38 billion.
Duncan Kreeger, director of West One Loans, comments:
“New homes are the fundamental fuel of a healthy property market – so the government and Bank of England are right to highlight the dangerous squeeze in the supply of property.
“But there are other ways to supply new homes. We need to make far better use of the buildings we already have.
“Help to Buy has a critical role to play in kick-starting brand new building sites – yet ground-up development is only one part of the finance that property professionals need in order to supply raging demand.
“Thousands of under-loved and under-occupied properties are still left waiting for refurbishment or conversion. Property developers and potential landlords just need the right sort of finance to get these empty offices or dilapidated blocks of flats to a decent standard and on the market. Flexibility is king – and government schemes can only do so much.”
