You are here: Home - News -

Help to Buy use hits new high ‒ MHCLG

by:
  • 28/11/2019
  • 0
Help to Buy use hits new high ‒ MHCLG
The Help to Buy equity loan scheme was used to purchase 52,268 homes in England in the year to the end of June, new figures from the Ministry of Housing, Communities and Local Government have revealed.

This is up six per cent from the same period last year, and represents a new record high since the scheme was launched in 2013.

Of those purchases, 43,285 were by first-time buyers. This is up eight per cent on the 40,228 from last year, while in London, purchases through the scheme came to a total of 6,149, a rise of 26 per cent compared to the previous year.

The data also revealed that since the scheme’s launch, around 56 per cent of the homes purchased had a value of less than £250,000, rising to 60 per cent when considering just first-time buyers.

Meanwhile, the median equity loan stands at £47,399 for all completions (falling to £45,000 for first-time buyers), while more than four out of every five purchases (83 per cent) is of a house rather than a flat or studio.

More than half (56 per cent) of Help to Buy purchasers did so with a deposit of up to five per cent, though around one in six (14 per cent) used a deposit of more than 15 per cent.

The figures come ahead of the Help to Buy ISA being closed to new applicants at midnight on 30th November.

Feeding frenzy

Andrew Southern, chairman of property developer Southern Grove, said that the “feeding frenzy” at the Help to Buy table shows no sign of slowing down, noting that the March 2021 cut-off is likely to “inject even more urgency into the market”.

He continued: “Demand has been particularly strong in London with properties bought by first-time buyers using the scheme increasing by more than a quarter compared to last year. It is notable, however, that 75 per cent of purchases are made using the full 40 per cent equity loan, emphasising the challenge of buying a property in the capital with its high prices.”

There are 0 Comment(s)

You may also be interested in

Read previous post:
Paul Flavin
‘No sympathy’ if lenders lose out after taking riskier approach in market share battle ‒ analysis

Lenders have only themselves to blame if they end up losing money by adopting riskier-than-usual pricing in a bid for...

Close