Help to Buy, the government’s flagship housing scheme, has helped almost 100,000 people buy a new home since it was introduced.
Since the launch of the Help to Buy equity loan and mortgage guarantee schemes:
- 80% of scheme completions have been made by first-time buyers, with more expected when the government’s Help to Buy ISA launches this autumn
- the average house price was £184,000, significantly below the national average
- almost 94,000 people have bought a home through the scheme
- 95% of Help to Buy completions took place outside of London
- over half of Help to Buy completions have been for new-build homes
Help to Buy: equity loan and Help to Buy: mortgage guarantee were launched in 2013 to support hard-working taxpayers who could pay a mortgage, but couldn’t afford the high deposits demanded by lenders in the wake of the financial crisis.
Together with the government’s Help to Buy: NewBuy scheme – which offered 95% mortgages for those buying new-build properties - the number of new home owners has reached almost 100,000 (99,601).
The scheme also continues to benefit first-time buyers overwhelmingly, with the vast majority of sales outside of London and at prices well below the national average.
Help to Buy is also ensuring the long-term health of the housing market by increasing housing supply, stimulating home building. Over half of the homes bought through Help to Buy are new-build properties, helping to contribute to the 41% rise in private house building in England since the launch of Help to Buy.
Chancellor of the Exchequer George Osborne said he was looking forward to these numbers growing even more with the launch of the new Help to Buy ISA this autumn, which will ensure that first time buyers saving for a deposit get an additional boost from the government.
"Key to our long term plan is providing economic security for working people, at every stage in life. The security of owning your own home is a big part of this, which is where Help to Buy comes in. It’s also boosting the economy more widely by driving an increase in house building in Britain, ensuring long-term housing supply and creating jobs.
"That’s why I committed £6 billion to extend Help to Buy to at least 2020, giving developers certainty so they can plan for future Help to Buy housing schemes and continue to boost housing supply. Today I’ve confirmed the first annual allocation of nearly £1.5 billion, providing funding for Help to Buy equity loan for 2016/17."
Stewart Baseley, executive chairman of the Home Builders Federation said: "Help to Buy Equity Loan has stimulated demand for new homes and led to a sharp rise in private house building. Extending the scheme to 2020 provides certainty of demand that allows home builders to recruit the people and invest in the land and supply chains required to support further sustained increases. Building more high quality homes has made home ownership attainable for many more first time buyers, whilst providing improved infrastructure for existing communities and boosting local economies.
"The Mortgage Guarantee scheme has also benefitted new home building, both directly by increasing demand for new homes, and indirectly by helping new home buyers to build housing chains."
