H2B: helping 88,000 buy a new home
Since the launch of the Help to Buy equity loan and mortgage guarantee schemes:
80% of scheme completions have been made by first-time buyers
the average house price was £185,000, well below the national average
over 80,000 people have bought a home through the scheme
94% of Help to Buy completions took place outside of London, and
over half of Help to Buy completions have been for new-build homes.
The governmnet also believes that Help to Buy is ensuring the long-term health of the housing market by increasing housing supply, stimulating home building. Over half of the homes bought through Help to Buy are new-build properties, helping to contribute to the 37% rise in private house building since the launch of Help to Buy.
More than 66,660 households having bought their first home thanks to the scheme. This is 80% of overall Help to Buy buyers, demonstrating that the scheme is successfully targeting those who need help getting on the housing ladder, despite only accounting for a small proportion of the mortgage market (3% for both mortgage guarantee and equity loan).
With almost all completions outside London, the highest number of homes have been through the mortgage guarantee scheme in the North West region.
Figures for the mortgage guarantee scheme also show completions have been least concentrated in regions where house price growth is highest. In London the scheme makes up just 1.3 % of all mortgage lending compared to an average of 3% across the country.
The Prime Minister David Cameron said: “This is all part of our long-term economic plan to secure a better future for Britain – and, together with cutting income tax, lowering council tax bills and freezing fuel duty, the government is backing those who work hard and get on find the financial security they deserve.”
Home Builders Federation executive chairman, Stewart Baseley, said: “Help to Buy has helped tens of thousands of people onto the housing ladder who otherwise would have struggled to meet their ambition of home ownership.
“First-time buyers in particular are taking advantage and the scheme is helping people in every part of the country. The resultant rise in demand is allowing builders to increase much needed house building levels. This is turn is creating tens of thousands of jobs and boosting local economies the length and breadth of the country.”