You are here: Home - News -

First-time buyers dominate property sales under Help to Buy schemes

by:
  • 29/09/2016
  • 0
First-time buyers dominate property sales under Help to Buy schemes
First-time buyers made up the majority of property sales under the Help to Buy: Equity Loan Scheme and Help to Buy: Mortgage Guarantee scheme, according to quarterly statistics released today.

The figures accounted for the first 39 months of the scheme since both were launched in 2013 until 30 June 2016.

A total of 91,759 properties were bought with the support of the Help to Buy: Equity Loan scheme with 81% of sales, 74,025, coming from first-time buyers.

Under the Help to Buy: Mortgage Guarantee Scheme, 79% of mortgage purchases came from first-time buyers, with strong support in the North West and Scotland.

This comes after it was announced earlier in the month that the Help to Buy: Mortgage Guarantee Scheme, which at its peak in 2014 enabled 4,362 mortgage loans to be agreed, is closing at the end of the year. The Bank of England believes the mortgage market is now self-sustaining.

Region
Equity Loans to First Time Buyers
Total Equity Loans
Wiltshire 1,225 1,550
Leeds 1,147 1,396
Central Bedfordshire 985 1,352
County Durham 1,095 1,237
Wakefield 1003 1185
Bedford 785 1144

Richard Sexton, director of E.surv, said: “The increase in the number of mortgages completed through the Help to Buy Mortgage Guarantee Scheme is an indication that the UK housing market remains open for business. The fact that the majority of appr,ovals were for first-time buyers also shows that the scheme is helping many borrowers to take an important first step towards owning their own home.”

Wiltshire (1,550), Leeds (1,396) and Central Bedfordshire (1,352) were among the strongest performing local authorities for completed mortgage sales. However, he added that despite the strong figures, more is required from government officials to help first-time buyers get their foot on the property ladder.

“Help to Buy is clearly a welcome initiative, but it doesn’t tackle the UK’s chronic shortage of housing supply. Until this key issue is addressed, nothing will truly change.

“If we want to see any real change in this area, we will need the government to work more closely with the industry to tackle this important issue head-on,” said Sexton.

There are 0 Comment(s)

You may also be interested in

Read previous post:
front of the Bank of England
PRA reveals scope and timeline for buy-to-let underwriting standards

The Prudential Regulation Authority (PRA) has issued its final standards for underwriting in the buy-to-let sector, following a consultation issued...

Close