Help to Buy sales update
The latest statistics on the uptake of the Government’s flagship Help to Buy schemes were published on 29 September 2016. The figures show that over 185,000 homes have been bought since the schemes were first launched in October 2013.
Some of the headline figures include:
- 81% of scheme completions have been made by first-time buyers;
- the average house price was £191,000, this is significantly below the national average;
- 95% of Help to Buy completions took place outside of London;
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. There were 935 completions in London between 1 February 2016 and 30 June 2016.
The press release from HM Treasury also highlighted the success of the Help to Buy: ISA scheme launched in December 2015. 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. More than 650,000 accounts have been opened since the scheme was launched.
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.’