There were 56,402 properties bought with loans from the state-backed Help to Buy scheme in the 27 months since its start in April 2013 to June 2015, the latest data from gov.co.uk reveal.
The total value of these equity loans was £2.42 billion,with the value of the properties sold under the scheme totalling £12.18 billion, the figures show.Overwhelmingly the scheme has helped first-time buyers, as 82 per cent of property transactions within the scheme were made to people purchasing their first home.
The figures are undoubted evidence for the scheme’s success, according to the Mortgage Advice Bureau (MAB).
Commenting on that MAB’s new homes director, Andy Frankish, said:
“The government’s Help to Buy equity loan scheme helped a record number of people access the property ladder in Q2, with more than 9,000 completions. This is not only a massive increase on the previous quarter, but is also 3% above the total recorded in Q2 2014. The overwhelming majority of people benefiting from the scheme are first-time buyers, and the price of a Help to Buy equity loan property remains 22% below the average UK house price*.“There’s no doubt that the scheme has been a success, and to date over 56,000 people have been able to become a homeowner through the scheme. The scheme represents a far more affordable route onto the property ladder – something that is sorely needed as many first-time buyers struggle to save for rising deposits.
“However, while the equity loan scheme is well ingrained in the sales of new homes, it won’t be around forever. The focus now needs to turn towards more permanent solutions that address the underlying problems affecting housing affordability. The issue of supply is a growing concern, particularly as new starts have flatlined in recent months while consumer demand rises. A lack of suitable properties will continue to force prices up, so it’s vital that government initiatives begin to tackle this critical imbalance.”
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