H2B Equity Loan helps 19,000 buy
The total value of the loans stood at £791m and the value of the properties sold under the scheme totalled £3.97bn,
Richard Sexton, director of e.surv chartered surveyors, said: “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.”
Most of the properties purchased through the scheme were bought by first-time buyers (87.5%) and the median price of a property was £184,995 with a median equity loan of £36,999.
Sexton said: “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 Sexton warned that there were still challenges that needed to be resolved.
He said: “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.”