The housing minster, Brandon Lewis from the Department for Communities and Local Government (DCLG) claims that an additional 43% of new homes are being built as a direct result of the Government’s Help-to-Buy equity loan.
82% of buyers would not have been able to buy without the scheme says the latest press release from DCLG, with no evidence they say of Help-to-Buy driving up house prices.
New research has found that 43% of new homes built under the Help to Buy equity loan scheme since 2013 would have not been built without introduction of the scheme.
Launched in 2013, the Help-to-Buy scheme was set-up to support “hard-working people who could pay a mortgage but struggle to save the deposits required by lenders”. DCLG claim that more than 130,000 people have now been able to become home-owners since the launch.
The latest research by DCLG found no evidence that the scheme has driven up house prices but did find that house-builders have much more confidence in the housing market.
Housing Minister Brandon Lewis said:
“Anyone who works hard and aspires to own their own home should have the opportunity to do so and this report shows how the government’s Help-to-Buy scheme continues to turn those dreams into a reality.
“We’ve got the country building again and seen the number of new homes increase by 25% in the last year alone with thousands of people across the country helped by the scheme.
“The number of owners assisted by other government schemes is also expected to continue rising through London Help to Buy and the Help to Buy: ISA, which has now been opened by more than 250,000 people.”
More Confidence in the Market
Help-to-Buy is supporting the country’s economy by getting Britain building again says the DCLG report. The report claims that builders have seen improved confidence in the market because of the scheme and that it has encouraged more lenders to enter the market. It is also helping people move up to bigger homes.
The research found that the average price of homes under the scheme is £212,000, £55,000 below the UK average of £267,000 and that it has brought down the average deposit needed.
The Help to Buy equity loan has been extended to 2021 through a further £8.6 billion of funding and will help up to 145,000 more people take steps towards owning their own home.
DCLG claim that 93% of buyers were satisfied with the experience of buying a property using the Help-to-Buy scheme.
From the 1st February 2016 a London Help-to-Buy scheme was started, allowing Londoners to buy a home with just a 5% deposit and a mortgage as low as 55% – in one week alone it is claimed there were 15,000 expressions of interest.
An extension of the Help-to-Buy equity loan scheme, the “London Help-to-Buy scheme” offers first-time buyers and second-steppers the opportunity to own a new-build home in the capital with a 5% deposit backed by an equity loan of up to 40% from the government.
A quarter of a million first time buyers have opened a Help-to-Buy ISA since its launch on 1 December 2015, a figure equivalent to one person opening an account every 30 seconds, or over 3,000 a day, claims DCLG.
Help-to-Buy gaining traction – https://t.co/P36iqDoVHY
— LandlordZONE (@LandlordZONE) February 18, 2016