The UK government’s flagship Help to Buy scheme has helped nearly 120,000 people achieve their aspiration of buying a new home since it was created, the latest figures reveal.
Since the launch of the Help to Buy equity loan and mortgage guarantee schemes some 80% of scheme completions have been made by first time buyers, with more expected when the government’s Help to Buy ISA launches in December.
The data also shows that the average house price under the scheme was £186,000, significantly below the national average and over 110,000 people have bought a home through the scheme with 95% sales outside of London and half for new build homes.
This counters fears that the scheme might be loaded against first time buyers and especially those seeking to buy homes outside of the capital city. Over 90,000 have been first time buyers.
Together with the government’s Help to Buy: NewBuy scheme, which offers 95% mortgages for those buying new build listings, the number of new home owners has reached over 118,000.
Help to Buy is also ensuring the long-term health of the housing market by increasing housing supply, stimulating home building. Half of the homes bought through Help to Buy are new-build listings, helping to contribute to the 36% rise in private house building since the launch of Help to Buy.
First time buyers will have a further boost from the Help to Buy ISA, which banks and building societies across the UK will offer from 01 December. Under this scheme, first time buyers can save up to £200 a month towards their first home and the government will boost their savings by 25%, or £50 for every £200, up to a £3,000 bonus. Six major lenders have already signed up to offer Help to Buy: ISAs. These lenders are Barclays, Lloyds Bank, Nationwide, Natwest, Santander and Virgin Money.
‘This government is committed to helping people achieve the aspiration of buying their own home, and our Help to Buy schemes have now helped nearly 120,000 working people across the UK do just that,’ said Chancellor of the Exchequer George Osborne.
‘The stronger economy and financial system means we expect banks to start to exit our Help to Buy Mortgage scheme, and it was introduced in times of financial distress and will come to an end next year in any case,’ he pointed out.
‘The Help to Buy shared equity scheme goes from strength to strength and our new Help to Buy ISA we’re launching in December will provide generous support to those saving for their first home by providing a government boost on their deposit,’ he added.
Communities Secretary Greg Clark said it has also helped the construction sector with private house building up by more than a third since the launch of the scheme.
Indeed, Home Builders Federation executive chairman Stewart Baseley, said Help to Buy continues to drive demand for new build homes.
‘Its success is allowing builders to increase the number of homes being built and provide much needed, high quality housing. Delivering much needed homes also creates jobs, boosts local economies, and provides improved infrastructure and amenities for new and existing communities,’ he explained.
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Source: Property News Spain