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PM: almost 750 H2B completions since launch

Sam Cordon

January 2, 2014

The Prime Minister also said that in the 3 months since the start of the Help to Buy mortgage guarantee scheme, over 6,000 people have put in offers on a home and applied for a mortgage.

In November, ministers published figures showing that in the first month of the scheme more than 2,000 people had put in offers on homes and applied for a Help to Buy mortgage. That number has now trebled to more than 6,000.

The mortgages, once approved, would represent nearly £1bn of new lending to aspiring home owners who may have previously found the property market out-of-reach because of the size of deposit required.

Cameron said: “The New Year is often a time when people look to make those big life-changing decisions like moving home or taking that first step on the housing ladder.

“But too many people have found themselves frozen out of the market in recent years as a result of the size of the deposit required.

“In less than 3 months, the scheme has already helped thousands of people.

“I want to see that continue in 2014 and for Help to Buy to help thousands more realise their dream of home ownership.”

Barclays and Santander will introduce their own Help to Buy products onto the market this month, joining Lloyds Banking Group, RBS, HSBC, Virgin Money and Aldermore who have all launched products over the last 3 months.

The expansion will mean two-thirds of the entire UK mortgage market will offer products under the Help to Buy scheme, bringing home ownership to a growing number of people.

New figures also show that an additional 20,000 households have also been supported by the Help to Buy Equity Loan scheme, a separate scheme where the government provides an interest-free loan to support the purchase of the newly built home.

House building is now growing at its fastest rate since 2008, and it is clear house building will remain a critical part of our economic recovery.

But Jeremy Duncombe, director, Legal & General Mortgage Club, said more must be done to encourage building and increasing supply.

He said: “The main issue that the government and the industry needs to focus on for 2014, is the lack of suitable housing in key areas of the UK.

“Supply is simply not meeting demand, driving up house prices and ultimately impacting affordability.

“In order for the market’s recovery to be both successful and sustainable, the supply of affordable and appropriate housing across the UK must be addressed.”


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