Help to Buy helps over 185,000 people buy a new home
29 Sep 2016 02:47 PM
The Help to Buy: ISA has helped more than 650,000 save towards their own home.
Today’s (29th September 2016) quarterly release of Help to Buy statisticsshow that over 185,000 people have been able to buy a new home thanks to the government’s package of Help to Buy products.
The government is committed to helping people achieve their aspiration of home ownership, through the range of Help to Buy schemes, including:ISA, Shared Ownership, Equity Loan, London Help to Buy and Mortgage Guarantee.
Today’s (29th September 2016) statistical release shows that, in total:
- over 185,000 completions under the schemes have taken place, of which over 150,000 households (81%) have been first time buyers
- the average house price for purchases with support from Help to Buy schemes is £191,000, showing that the schemes target responsible lending to first time buyers who tend to buy smaller and cheaper properties
- 95% of Help to Buy completions have taken place outside London
Economic Secretary to the Treasury, Simon Kirby, said:
Through the Help to Buy schemes, we have helped 185,000 people buy a house. And hundreds of thousands have taken advantage of the ISA, with its generous government bonus, to move towards their dream of owning their own home.
Housing and Planning Minister, Gavin Barwell, said:
Today’s figures show that Help to Buy is helping more people realise their home ownership dream, by reducing the need for large deposits and getting more new homes built.
With hundreds of households helped everyday through our range of government-backed schemes, we are building a country that works for everyone and not just the privileged few.
The Help to Buy: ISA is proving hugely popular with first time buyers looking to achieve their aspiration of home ownership. More than 650,000 accounts have been opened since launch in December 2015, with the ISA offering a government bonus of up to £3,000 towards the purchase of a new home.
More than 90,000 completions have now successfully taken place using the Help to Buy: Equity Loan scheme, where the government lends buyers up to 20% of the cost of a newly built home, so only a 5% cash deposit is required.
Help to Buy: Equity Loan supported 935 completions in London between February and June 2016. This includes completions from the London Help to Buy scheme, launched in February 2016, which supports purchases of new build homes in the capital by offering a 5% deposit backed by an equity loan of up to 40% from the government.
In addition, the Chancellor has confirmed today that the Mortgage Guarantee Scheme will close to new loans on 31 December 2016, as previously advertised. The scheme was introduced in 2013 to increase the availability of high loan to value mortgages. Confidence has now returned to the market with an increasing number of lenders offering 90-95% loans outside the scheme. The government will continue offer the highly popular Help to Buy equity loan and ISA schemes.
The Help to Buy schemes have also been welcomed by industry:
Council of Mortgage Lenders Director General, Paul Smee, said:
Help to Buy continues to give a welcome leg-up to many creditworthy buyers who may not otherwise have been able to get a foothold on the property ladder. The scheme has helped buyers right across the country, including a high proportion of younger borrowers and first-time buyers. Mortgages for those with small deposits are now becoming more common outside the scheme and Help to Buy has been a significant help for buyers when they were less readily available.
Stewart Baseley, executive chairman of the Home Builders Federation, said:
Help to Buy continues to drive demand for new build homes by making home ownership more affordable and realistic. Its success is directly leading to more homes being built as it provides the confidence developers need to invest in the land and people required to increase their output.