Help to Buy Buys More Than 150,000 Properties

Help to Buy Buys More Than 150,000 Properties

The latest figures from the Ministry of Housing, Communities and Local Government show that 158,883 properties have been purchased using the Help to Buy equity loan scheme. The total value of the loans was £8.27 billion and they were used to purchase new build properties worth a total of £39.28 billion.

The figures, covering the period from the 1st of April 2013 until the 31st of December 2017, show that eight out of 10 of these purchases were made by first time buyers, while the average price of a property bought under the scheme was £247,230, with a loan of £52,026.

“These statistics show that there is still considerable appetite for Help to Buy among first-time buyers,” said Intermediary Mortgage Lenders Association (IMLA) executive director, Kate Davies. “As we approach what is a pivotal juncture for the industry, with the scheme due to come to an end in 2021, clarity is urgently needed over what will come next.”

In February, London benefited from a maximum equity loan increase from 20 to 40%. From then until the end of last year there were a total of 6,867 Help to Buy completions in London, of which the majority (5,546) were made with an equity loan above 20 per cent.

“Help to Buy continues to play a fundamental role in helping first-time buyers step onto the property ladder, accounting for 81 per cent of total first time buyer purchase and around 20 per cent new build additions in 2017,” said Legal & General Mortgage Club’s new build manager Craig Hall. “With increasing numbers of lenders entering the Help to Buy market, we need to have a decision made sooner rather than later to allow for long-term planning.”

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