Taylor Scott International News
Over 150,000 people have achieved their aspiration of home ownership In the UK since the government’s flagship Help to Buy housing schemes were launched two years ago, the latest data shows. Some 80% were first time buyers, the average house price was £188,380 significantly below the national average, over half were for new build homes and 95% of Help to Buy completions took place outside of London. The figures confirm that it is first time buyers, for whom the scheme was designed, have indeed benefitted the most with 118,000 households having bought their first home via the scheme. First time buyers will have a further boost from the Help to Buy: Isa launched in December 2015. The scheme has already helped a quarter of a million first time buyers save for their first home by providing a bonus of up to £3,000. With almost all completions outside London, the highest number of homes through the mortgage guarantee scheme have been in the North West region and the equity loan scheme for new build properties is particularly prevalent in the South East region. First time buyers and second steppers will also have a further boost from the London Help to Buy scheme launched in February 2016. The scheme supports purchases of new build homes in the capital by offering a 5% deposit backed by an equity loan of up to 40% from the government. Figures for the mortgage guarantee scheme also show completions have been least concentrated in regions where house price growth is highest. In London the scheme makes up just 1% of all mortgage lending compared to an average of 3% across the country. Over half of the homes bought through Help to Buy are new-build properties, helping to contribute to the 14% rise in private house building since the launch of Help to Buy. This has supported new housing construction output with total new housing construction activity in 2015 the highest on record. Annual housing starts are now at an eight year high with over 700,000 new homes built since 2010. ‘The government is committed to helping people achieve the aspiration of buying their own home, and all our Help to Buy schemes have now helped almost half a million people,’ said Chancellor of the Exchequer George Osborne. However, he pointed out that while the stronger financial system means the Government expects banks to start to exit the Help to Buy Mortgage Guarantee scheme, the other Help to Buy schemes go from strength to strength. ‘Increased confidence coupled with our clear ambition to deliver one million new homes is leading to more house building with the numbers of new homes at a seven year high. Government backed schemes are helping an increasing number of people to realise that home ownership is realistic for them,’ said Communities Secretary Greg Clark. Housing Minister Brandon Lewis acknowledged that there is more work to be done to get the homes built people want but described the figures as… Taylor Scott International
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