You are here: Home - News -

Help to Buy sees most popular quarter

  • 30/03/2017
  • 0
Help to Buy sees most popular quarter
The last three months of 2016 were the most successful for the Help to buy equity loan scheme since its launch.

More than 12,000 purchases involving the scheme were completed in the final quarter of last year – 82% of which were first-time buyers, according to the latest data from the Department for Communities and Local Government.

The scheme lent more than £700m for the first time during the period – far higher than the previous peak of £582m between April and June last year.

Expanding the scheme in February 2016 to include a deposit of up to 40% for new-build properties within greater London has boosted its attraction to borrowers.

However, earlier the week, communities secretary Sajid Javid told house builders that to help cut “feudal” leasehold arrangements he would legislate to only allow the scheme to be used when buying new build properties on “acceptable terms”.

Brokers have also been vocal about the dearth of options within the Help to Buy remortgage market meaning borrowers were stuck with a lack of product choice, high fees and poor service.

Overall the scheme has made 112,338 loans (90,724 to first-time buyers) totalling £5.34bn (£4.13 to first-time buyers) since April 2013.

Search Acumen director Andy Sommerville said the data showed the scheme was generally working to support first-time buyers, but noted it did raise issues about pushing up prices.

“The underlying question of affordability still remains,” he said.

“The average price of £233,403 paid under the scheme jumps 6% above that paid on average for all properties in the UK in December 2016.

“This reveals that although the scheme has gone some way to facilitating house buyers onto the ladder, the overarching purpose of bringing the value down still needs addressing. The industry must pull together to overturn our housing shortage and answer the cries of those struggling to make that first purchase,” he added.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Metro Bank
Metro targets professional landlords with rate reductions

Metro Bank has reduced rates across its core buy-to-let range for professional landlords.