Help to Buy sales update
The latest statistics on the uptake of the government’s flagship Help to Buy schemes were published on 30 March 2017. The figures show that over 259,000 homes have been bought since the schemes were first launched in October 2013. The portfolio of Help to Buy schemes include: ISA, Shared Ownership, Mortgage Guarantee, Equity Loan and London Help to Buy. The average house price across the schemes is almost £193,000.
The average house price to income multiple under the mortgage guarantee scheme is capped at a 4.5x ratio to ensure responsible lending. The London Help to Buy scheme was launched in February 2016 and is helping London residents to buy a new home with a 5% deposit and a mortgage as low as 55% for first time buyers as well as homeowners looking to move to a newly built home with a price tag of up to £600,000. The London Help to Buy scheme has been used by 2,381 buyers in the first 11 months since the scheme was launched.
The Help to Buy: ISA scheme was launched in December 2015 and so far over 868,000 accounts have been opened. The scheme allows savers to claim a government bonus of 25% on monthly savings of up to £200 on savings towards their first home. The bonus translates to an extra £50 added to every £200 saved up to a maximum governmental contribution of £3,000 on £12,000 worth of savings.
The Chancellor of the Exchequer, Philip Hammond, said:
‘This government is committed to helping working people get on the housing ladder. Our Help to Buy schemes are proving hugely popular across the country. More than a million people are now using them to help achieve home ownership, particularly first time buyers.’
The latest statistics on the uptake of the Government’s flagship Help to Buy schemes were published on 5 March 2015. The figures show that over 88,000 homes have been bought since the schemes were first launched in October 2013.
Some of the headline figures include:
- 80% of scheme completions have been made by first-time buyers;
- the average house price was £185,000 (£156,000 for the mortgage guarantee and £212,000 for the equity loan scheme), significantly below the national average of £272,000;
- 94% of Help to Buy completions took place outside of London;
- over half of Help to Buy completions have been for new-build homes.
The average house price to income multiple under the mortgage guarantee scheme is just over 3.5x salary, and capped at a 4.5x ratio to ensure responsible lending.
Commenting on the figures, Chief Secretary to the Treasury Danny Alexander said:
‘Help to Buy has now helped almost 90,000 homebuyers across the UK buy a new or bigger home as part of this government’s drive to create a fairer society. We have been able to introduce this scheme – which is just one of the many ways that we’re helping people across the UK – because we’ve got the public finances and economy on a stronger footing, as the fastest-growing economy in the G7.’