You are here: Home - News -

Help to Buy completions fall by over a quarter ahead of scheme wrapping up

by:
  • 10/11/2022
  • 0
Help to Buy completions fall by over a quarter ahead of scheme wrapping up
Help to Buy completions in Q2 came to 8,018 properties, down 26 per cent on the same period last year.

According to the latest government statistics, the total value of equity loans came to £612m and the total value of properties was pegged at £2.45bn.

Help to Buy closed for new applicants at the end of October, but the developer should finish building the home by 31 December and legal completions have a deadline of 31 March.

Brokers said Help to Buy would leave a mixed legacy, as it has helped many people on to the ladder but there were issues around debt and rising house prices as well as a lack of a suitable replacement.

The Department for Levelling Up said completions were down in all regions in Q2 this year compared to the same period last year.

The largest fall was recorded in the West Midlands, which decreased by 43 per cent compared to Q2 last year. The decline in London was around 19 per cent compared to the same period this year.

The regional decreases were partially attributed the regional price caps that were introduced.

The regional price caps have also led to the mean purchase price falling, with the largest decrease occurring in the North East where property purchase price contracted by 30 per cent in Q2.

The report added that the average household income of Help to Buy users was also lower in all regions in Q2 compared to the first full quarter of the previous scheme.

The largest fall was in the North East, where median household income decreased by 27 per cent in Q2 compared to Q1 2021.

Mean deposit percentage also fell, with North East also coming top in terms of a decrease at 1.5 per cent.

The absolute mean deposit amount also lowered in all regions except London. The largest decrease was in the North East where the absolute mean deposit amount fell by 46 per cent in Q2 2022 when compared to Q12021.

There are 0 Comment(s)

You may also be interested in