The government’s Help to Buy scheme has helped over one million people since it was launched in 2012. Over 285,000 homeowners have used one or more of the Help to Buy schemes, while 960,000 people have opened a Help to Buy ISA. Stephen Barclay, economic secretary to the Treasury said: “We want to make sure […]
The government’s Help to Buy scheme has helped over one million people since it was launched in 2012.
Over 285,000 homeowners have used one or more of the Help to Buy schemes, while 960,000 people have opened a Help to Buy ISA.
Stephen Barclay, economic secretary to the Treasury said: “We want to make sure that anyone who works hard and aspires to own their own home has that opportunity.
“That is why I am delighted that our Help to Buy schemes have now helped over 240,000 first time buyers across the country achieve home ownership.”
More than 240,000 first-time buyers are now on the housing ladder thanks to Help to Buy.
The average house price across the schemes is £193,826, which is below the average UK house price of £220,000.
More than 120,000 completions have now taken place through the Help to Buy Equity Loan scheme, which offers buyers up to 20% of a newly-built home’s costs so they only need to provide a 5% deposit.
Alok Sharma, housing and planning minister, said: “As set out in our housing white paper, we’re committed to helping those aspiring home buyers currently locked out of the market to turn their home ownership dreams into reality.
“Today’s figures show that Help to Buy equity loan continues to be hugely successful, supporting thousands of households across the country to take their first step onto the housing ladder.”
The North West, Yorkshire and the Humber, and the South West have seen the highest number of property completions using the Help to Buy ISA. In total, 62,528 completions across the UK using the ISA bonus have taken place since launch in December 2015.
The London Help to Buy scheme provides an equity loan of up to 40% for buyers in the capital with a 5% deposit. It has helped 3,249 buyers in the capital across 32 boroughs purchase their own property between February 2016 and March 2017.
Lifetime ISAs
Lifetime ISAs are aimed at people looking to save a deposit for their first home or for retirement and are seen as the long-term replacement for Help to Buy ISAs.
The scheme was introduced on 6 April and allows anyone younger than 40 to put away up to £4,000 a year until they are 50.
It can be used by first-time buyers to fund a deposit for a property or taken tax free at 60 and has a tempting 25% bonus.
So for every £4 people save, the government will give them back £1, a bonus of up to £1,000 a year.
The Help to Buy ISA will continue to be available to new applicants until 30 November 2019, after that you will have to take out a Lifetime ISA.
Danny Cox, chartered financial planner at Hargreaves Lansdown, said: “Help to Buy is proving to be a popular warm up act for the Lifetime ISA, reducing the time it takes for first time buyers to take that all important step onto the property ladder.
“Transferring a HTB ISA to a Lifetime ISA makes sense for all but those who are planning to buy over the next 12 months, as the Lifetime ISA has higher contribution limits and for those who have time on their side, offers the option to invest to beat cash returns.”
