The Government has just released the results of 2018 for its Help to Buy Scheme Since April 2013, some 210,964properties were bought with an equity loan. This means that there was a equivalent of 143 homes sold per day, that’s 1000 properties selling every week!
Help to Buy has now been operating over a six year period, first time buyers represent 81% of those buyers who have been helped onto the housing ladder by the Help to Buy Equity scheme. The Government scheme accounts for a total loan value of £11.7 billion since being set up by the government in April 2013. The overall value of properties sold through the initiative stands at a massive £54.48 billion and rising!
London’s lead the equity loan value rising by 20% since 2016. Under the scheme the mean equity loan was £55,498 and the mean purchase price of a property bought was £258,223. From February 2016, in London the equity loan rose from 20% to 40%, which is great news for all of you first time buyers. From February 2016 until the end of 2018, there was a 12,511 property transactions in London and 10,635 were made with an equity loan higher than 20%. During the first quarter of 2019, HMRC transaction statistics potentially suggested that Help to Buy fuelled sales are still performing consistently, continuing the trend of the last 12 months.
Did you know, that one in seven first time buyers benefits from the Help to Buy scheme. The Government scheme was highly successful in 2018, and will. Continue to stimulate the bottom of the housing ladder and indirectly support the whole of the UK’s property sector throughout the year. It is likely that the scheme will remain invaluable in supporting home buyers over the remining years of the scheme and will play a crucial role in helping to keep the housing market on an even page, during a period of uncertainty as a result of Brexit.
Unfortunately the Government has made it clear that the Help to Buy will come to an end in 2023 and that it is looking to lenders and developers to come up with alternative products for first time buyers and second movers. It is vital that the Government and industry works together to ensure these buyers remain supported, it is likely that we could see private schemes coming to the market to help the market. There is good opportunity to buy now, renters should not hold back, as you can put down a deposit as little as 5%. To see what developments we have to offer, associated with Help to Buy, please visit our website (Hyperlink).
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