30.10.2014
The statistics reveal that first-time buyers make up the largest proportion of people taking up the equity loan scheme, with 84 per cent of purchases made through Help to Buy coming from this group.
Under the Help to Buy equity loan scheme, homebuyers are required to contribute at least five per cent of the property price as a deposit, while the government provides a loan for up to 20 per cent of the price, with a mortgage of up to 75 per cent to cover the rest.
It was revealed that in the first eighteen months of the scheme – up until 30 September – 33,911 properties were purchased with an equity loan.
Almost 11,000 homes purchased using the Help to Buy scheme were valued between £150,000 and £200,000. Terraced properties were most frequent type of property sold under the scheme, representing 29.8 per cent of total completions, followed closely by semi-detached properties at 27.5 per cent.
33,911 Properties Bought Using Help To Buy In 18 Months
New figures published by the Department for Communities and Local Government have revealed that first-time buyers have been taking advantage of the government’s Help to Buy scheme to get onto the property ladder.The statistics reveal that first-time buyers make up the largest proportion of people taking up the equity loan scheme, with 84 per cent of purchases made through Help to Buy coming from this group.
Under the Help to Buy equity loan scheme, homebuyers are required to contribute at least five per cent of the property price as a deposit, while the government provides a loan for up to 20 per cent of the price, with a mortgage of up to 75 per cent to cover the rest.
It was revealed that in the first eighteen months of the scheme – up until 30 September – 33,911 properties were purchased with an equity loan.
Almost 11,000 homes purchased using the Help to Buy scheme were valued between £150,000 and £200,000. Terraced properties were most frequent type of property sold under the scheme, representing 29.8 per cent of total completions, followed closely by semi-detached properties at 27.5 per cent.
Expert Opinion
“The government’s Help to Buy scheme has been in place for some time and we are beginning to see real evidence of its impact on the property market, particularly among first-time buyers. The initiative has helped to provide those looking to get onto the property ladder more opportunities when it comes to making their first property purchase, as they no longer need to save for such a large deposit. <br/> <br/>“Renting a property has become increasingly more expensive and since the launch of the Help to Buy scheme, as demand for short-term properties continues to rise, the initiative has given people a much better chance of getting on the housing ladder. <br/> <br/>“Making it easier for people to buy properties through initiatives such as Help to Buy also makes it easier for those taking their 2nd or 3rd step to sell, generating a positive effect on the housing market, which has been evidenced by many regions surpassing their pre-recession property prices.” Helen Hutchison - Partner
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