Help to Buy reaches new landmark figure

by Gary Whittaker

The number of people buying homes thanks to the government's Help to Buy  schemes has reached a new landmark of 250,000.
 
New figures have shown that the programme has enabled 285,000 people to complete housing purchases, of whom 240,000 are first-time buyers. 
 
In addition, 960,000 people now have Help to Buy Isas, which are designed to help save for deposits.
 
The average price of a house bought through the scheme is £193,826, a figure that comes below the UK average. However, as the data release noted, 90 per cent of completions have taken place outside London, which may have slightly reduced the figure, as it means a disproportionate number of transactions have taken place in areas where the average home costs less than in the capital.
 
Overall, 3,249 people bought their home with a five per cent deposit using the equity loan available, which can be worth up to 40 per cent of the value of a property between the launch of the London Help to Buy scheme in February 2016, and March 2017.
 
By comparison, many more people have been able to use the scheme to purchase homes in other regions, with the highest numbers of those using the Help to Buy ISA to complete a transaction being found in the north-west, Yorkshire and the Humber and south-west regions. Over 65,000 purchases have been completed using the ISA.
 
The figures may give landlords an indication of where it is that demand for rental property is likely to remain at its highest due to the comparatively low number of people using Help to Buy measures to move from renting onto the housing ladder. 
 
In its latest market commentary, the Council of Mortgage Lenders said the less favourable economic climate of the next few months could lead to a drop in the number of first-time buyers.
 
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21-June-17General Lettings News