Over 80,000 first time buyers take advantage of UK’s Help to Buy scheme

Richard Carr believed it was important the country voted Conservative in last month’s general elections to continue the growth in the market.

Arguably the party’s most successful property policy – Help to Buy – has this week hit a landmark with 100,000 UK residents using the scheme to purchase a home.

Entry level for first time buyers

Richard Carr DevelopmentOf those 100,000 buyers, the latest data shows that some 80% of scheme completions were made by first time buyers.

That percentage is expected to rise after autumn 2015 following the introduction of the Conservatives’ Help to Buy ISA, which will provide savers with a monthly bonus.

The average house price of homes via the scheme was below the national average at £184,000, whilst over half of transactions have been for new build homes. This is a good sign for developers and construction firms moving forward and for the country’s economy, which relies heavily on a growing and prosperous construction sector.

Long term health

Officials believe that the scheme is ensuring the long term health of the housing market as it continues to increase housing supply and stimulate home building.  The scheme has helped contribute to the 41% rise in private house building in England since its launch back in 2013.

Chancellor of the Exchequer George Osborne, told propertywire.com: “‘he government’s Help to Buy scheme has now helped nearly 100,000 people across the UK achieve their aspiration of buying a new or bigger home and I’m looking forward to these numbers growing even more with the launch of the new Help to Buy ISA this autumn, which will ensure that first time buyers saving for a deposit get an additional boost from the government.

“Key to our long term plan is providing economic security for people at every stage in life. The security of owning your own home is a big part of this, which is where Help to Buy comes in. It’s also boosting the economy more widely by driving an increase in house building in Britain, ensuring long-term housing supply and creating jobs.”

Slow planning system

Richard Carr believes that this is great news, especially for the people who have benefitted from this scheme. However, he feels that there is a need to address the painfully slow journey of getting planning for sites.

Furthermore, a moratorium on CIL, S106 and all other direct taxes on planning as should be introduced because it has reduced the available number of sites, making so many no longer cost effective.