Some 29,829 new-build homes have been bought through the equity loan scheme and a further 18,564 properties have been acquired by a mortgage guarantee through Help to Buy mortgage guarantee scheme, which launched last October. First-time buyers make up the vast majority of transactions through Help to Buy, with 85 per cent of Help to Buy 1 and 85 per cent of Help to Buy 2 borrowers purchasing their first home using the schemes.
Help to Buy was the flagship policy of last year’s Budget and aims to boost the availability of 95 per cent loan to value mortgages. The scheme works in two parts; the first part came into effect in April as a shared equity scheme for new build homes. The second part, a £12bn mortgage indemnity scheme with the potential to support up to £130bn of lending, which was launched by Mortgage Strategy in February last year, came into force in October for all properties worth up to £600,000.
Chancellor George Osborne says: “It’s great to see that nearly 40,000 first-time buyers have been helped onto the housing ladder by the Help to Buy scheme. Importantly, Help to Buy is also driving a big increase in house building in Britain, boosting the construction industry and increasing housing supply.” Enable’s IFA’s are always pleased to see schemes that help first time buyers to get their feet on the housing ladder but what is the scheme overall doing to house prices?
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