Help to Buy moves over 420,000 onto the housing ladder
New data from HM Treasury has shown more than 420,000 people have made a move onto the property ladder thanks to help from a Help to Buy scheme.
More than 365,000 of those were first-time buyers where the most active to take advantage of the schemes were within the North West with 20,0000 Help to Buy completions in the last quarter alone.
So far, some 1.2 million Help to Buy ISAs have been opened with an average government bonus of £800, with savers able to receive up to a total £3,000 based on how much they’re able to save each year.
The abolition of stamp duty for first-time buyers was also a major bonus in a bid to make getting on the housing ladder more affordable. According to government data, nearly 122,000 buyers have benefited, saving an average of £2,337 each.
John Glen, Economic Secretary to the Treasury, said that: “We’re helping a new generation of first-time buyers realise their dream of owning a home.
“Help to Buy continues to be hugely popular across the UK, with 420,000 people getting support so far.
“And with our stamp duty cuts and the lifetime ISA, we are delivering for first-time buyers.”
There’s also evidence that joining a Help to Buy scheme is accelerating the speed at which first-time buyers can enter the property market. According to the Treasury’s report, whilst the average age of buyers purchasing their first property on average is 30, those within a scheme are able to buy by the age of 27 in the last quarter.
Help to Buy Scheme Explained
Help to Buy is a government scheme designed to ignite first-time buyer activity and support those struggling to save enough deposit to make their first step on the property ladder.
With the average age of first-time buyers increasing over the last 50 years and the bank of mum and dad not always available, Help to Buy schemes such as shared ownership and equity loans have helped boost the affordability of properties for younger buyers.
Help to Buy options are applied to numerous new build developments in particular, whilst resale properties also sometimes offer the scheme – again predominantly those which are relatively new units.
The three primary Help to Buy scheme options for prospective buyers include Shared Ownership where a percentage cut of a property can be purchased and rent paid on the remaining share, the Help to Buy ISA which offers bonus incentives of up to £3,000 on savings for a property deposit and the 5% deposit with Help to Buy shared equity loan where less cash is required upfront with the government lending 20% of the property value as a loan.