The Government has revealed that nearly 260,000 people have bought a home through one of its Help to Buy schemes and that over 868,000 savers have opened a Help to Buy ISA.
First-time buyers were the biggest users of the scheme accounting for most of the 84% of Help to Buy completions, according to figures from the Treasury, which revealed the average house price across the scheme was £192,854.
The equity loan scheme has now played a part in 112,000 completions.
Through the scheme, buyers are able to borrow up to 20% of the cost of a new-build (up to 40% in London) from the Government, so that they only need to find a 5% deposit.
Chancellor Philip Hammond said:
“This government is committed to helping working people get on the housing ladder. Our Help to Buy schemes are proving hugely popular across the country. More than a million people are now using them to help achieve home ownership, particularly first time buyers.”
Since the introduction of the equity loan scheme, £8.6bn has been committed to it by the Government and the scheme has therefore been responsible for 14% of all new build housing output.
As for the Help to Buy ISA, its impact has been greatest on completions in the North West, Yorkshire and The Humber and the South West.
In total, the treasury reports that 45,098 completions have taken place across the UK since December 2015 using the ISA bonus.
In London, 2,381 buyers used the London Help to Buy scheme between 1 February and 31 December 2016.
Housing minister Gavin Barwell said:
“Our Help to Buy equity loan scheme continues to make home ownership a reality for thousands of people, especially first time buyers right across the country.”
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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