The government’s Help to Buy scheme was launched in 2013 and facilitated 375,654 house purchases with 84 per cent being bought by first-time buyers.
The legal completion deadline was at the end of March this year, with the housebuilder completion set for 17 March. The scheme closed for new applications in October last year.
Brokers have previously expressed concerns that there is not an adequate replacement for Help to Buy, and schemes like shared ownership, First Homes, Deposit Unlock could not fill the gap.
John Doughty (pictured), financial services director at Just Mortgages new build division, said that with over 350,000 buyers on the housing ladder, many being first-time buyers, and nearly £2bn generated for the Treasury, Help to Buy had been a “success on all fronts”.
“Now it has concluded, all sectors must join together to help elevate the profile of the fantastic schemes still available for first-time buyers, those with smaller deposits or individuals returning to the market after a separation or divorce,” he added.
Doughty said that shared ownership had “long been a viable alternative”, especially following the introduction of regional price caps in the Help to Buy scheme.
Government figures show that 19,836 shared ownership properties were delivered in 2021-2022, which is a rise of 14 per cent on the year before. It is also the higher since records began in 2014-2015.
“As it continued to wind down, we saw more enquiries and interest in shared ownership with 2022 being our busiest year. This clear demand for low deposit alternatives has continued into 2023, especially as both First Homes and Deposit Unlock have continued to expand,” he noted.
Doughty said a “joined-up approach behind these schemes will help highlight the opportunities available for those facing tougher affordability challenges”.
“With housebuilding already feeling the impact of losing Help to Buy – especially in a higher interest environment, a concerted effort by all parties will ensure more properties are available, helping to fuel new-build demand in the process.
“With developers working collaboratively with lenders, housing associations, scheme providers and brokers, we will continue to see more homes built and more opportunities to unlock potential buyers,” he explained.
Maximising opportunities of low deposit schemes will be a topic at Just Mortgages’ New Build and Affordable Housing event, which takes place at St. Mary’s Church in Marylebone, London on 19 April.
To register for the event follow this link.
