400,000 first-time buyers have made a step onto the property ladder thanks to Help to Buy
New official data has shown that more than 400,000 first-time buyers have made their first steps on the property ladder thanks to the range of Help to Buy schemes such as shared ownership, equity loans and Help to Buy ISAs.
In total, 458,000 purchases have involved one of the Help to Buy schemes, of which 402,000 were first-time buyers.
And the Help to Buy ISA is positioning over a million buyers to be ready to buy with 1.2m new accounts opening for which the Government tops up savings by up to £2,000.
So far, 9 in 10 home purchases using a Help to Buy scheme have taken place outside of London with the average value of a property bought through the scheme standing at £201,881.
More than 183,000 competitions have taken place using the Help to Buy Equity Loan scheme alone which offers buyers a loan to cover 20% of the price of a newly built home, reducing the required deposit required to just 5%.
John Glen, economic secretary to the Treasury said of the figures that: “We want to help as many people as possible experience the fantastic feeling of pride you get when you collect the keys to your first home.
“That’s why we offer the special Help to Buy: ISA for them to save, cut their Stamp Duty, and introduced a new Help to Buy Equity Loan to run until March 2023.”
Secretary of state for housing, James Brokenshire, added that: “It’s great news that since 2010 we have helped over half a million people get on the housing ladder, through programmes such as Help to Buy.
“We are determined to do more, which is why we have dedicated over £44 billion of investment to help deliver the homes communities need.”
Interestingly, the most purchase competitions using a Help to Buy ISA were in the North West and Yorkshire and the Humber – two of the highest-growth local markets which are also expected to see the highest regional price growth over the next five years according to a report by Savills.
Earlier this year it was announced that the Help to Buy programme would be extended by two years to 2023 for first-time buyers to further support the bottom end of the housing market and stimulate continued growth throughout, with property developers in particular buoyed by further certainty for the medium term in interest and competitions from those taking their first step onto the property ladder.