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Help to Buy paves way for 70,000 home purchases

by: Samantha Partington
  • 02/02/2015
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Help to Buy paves way for 70,000 home purchases
The Help to Buy equity loan and mortgage guarantee schemes have paved the way for over 70,000 homeowners to get on the ladder up to December, government statistics revealed.

The number of new build homes bought using the government’s equity loan scheme reached 41,533 in December while the mortgage guarantee scheme, which is also open to second hand homes, reached 30,269.

The schemes were launched in April 2013 and October 2013 respectively.

The scheme has also helped get the country building again. Housebuilding has risen to its highest level since 2007 with companies taking on workers at the fastest rate since 1997.

Housing minister Brandon Lewis (pictured) said: “To date, Help to Buy has helped over 77,000 [including NewBuy] households to purchase a home with just a fraction of the deposit they would normally require. The scheme has also helped get the country building again, with private housebuilding up 20% over the last year and its highest since 2007.

“This, and today’s industry figures showing 100,000 new housebuilding jobs created in just the last 18 months show clearly that Help to Buy is a success.”

Research from Mortgage Advice Bureau released today revealed that the average salary for homeowners using the mortgage guarantee scheme had fallen 11% to approximately £28,000 in the final quarter last year. Head of lending Brian Murphy said this was an encouraging sign.

“It is reassuring to see that people with more modest salaries can still access the housing market without needing to command high salaries or have saved a large deposit,” he said.

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