Help to Buy sees record breaking June

To date, 56,402 properties have been purchased with an equity loan. The total value of these equity loans was £2.42 billion, with the value of the properties sold under the scheme totalling £12.18 billion.

The price of a Help to Buy equity loan property remains 22% below the average UK house price

Most of the home purchases in the Help to Buy: Equity Loan scheme were made by First Time Buyers, accounting for 82% of total purchases.

Most completions under Help to Buy: Equity Loan scheme were made by purchasers with a deposit of up to 5%, accounting for 64.9% of total completions.

Andy Frankish, New Homes Director at Mortgage Advice Bureau, commented:

“The government’s Help to Buy equity loan scheme helped a record number of people access the property ladder in Q2, with more than 9,000 completions. This is not only a massive increase on the previous quarter, but is also 3% above the total recorded in Q2 2014. The overwhelming majority of people benefiting from the scheme are first-time buyers, and the price of a Help to Buy equity loan property remains 22% below the average UK house price.

“There’s no doubt that the scheme has been a success, and to date over 56,000 people have been able to become a homeowner through the scheme. The scheme represents a far more affordable route onto the property ladder – something that is sorely needed as many first-time buyers struggle to save for rising deposits.

“However, while the equity loan scheme is well ingrained in the sales of new homes, it won’t be around forever. The focus now needs to turn towards more permanent solutions that address the underlying problems affecting housing affordability. The issue of supply is a growing concern, particularly as new starts have flatlined in recent months while consumer demand rises. A lack of suitable properties will continue to force prices up, so it’s vital that government initiatives begin to tackle this critical imbalance.”