According to recent figures by the end of 2017 the government’s Help to Buy scheme has helped with more than 150,000 property purchases.
• £8.27 Billion of Help to Buy Loans
• 81% of Help to Buy purchases are for first-time buyers
• The average property purchase price through Help to Buy was £247,230, with the mean equity loan at £52,026
• Many properties purchased in London made use of a higher 40% equity loan threshold.
The new figures demonstrate the success of the Help to Buy scheme, and there are already calls to extend the scheme beyond the budgeted 2021 date, currently in place by the government. Figures suggest that many housebuilders are heavily reliant on sales because of the success of the shared equity scheme, and an extension of the Help to Buy scheme would keep the new build sector buoyant.
The increase in equity loan in London from 20% to 40% is 2016 has helped open the Help to Buy scheme to numerous more buyers. London saw the biggest number of new builds completed in 2017, at 8,522, compared with 1,978 in Merseyside, the area that saw the next largest number of new build properties completed.
Hiten Ganatra, Managing Director at Visionary Finance said: “Demand for new build properties continues to be strong and government strategy should continue to support first time buyers and the property and house building sector.”
“New build properties offer many benefits, including the convenience of a fairly swift transaction, the luxury of zero initial maintenance and house builders will offer deals and incentives to help make a sale.”
Help to Buy has been a strong government initiative, helping to make it easier for first-time buyers to get on to the property ladder and has made it easier for house-builders to transact on new build properties. It remains to be seen whether the government will continue the programme in its current form, revamp the programme or introduce a new scheme beyond 2021.