Home Residential PropertyHelp-To-Buy Only seven per cent of completions across the help-to-buy scheme were in London

Only seven per cent of completions across the help-to-buy scheme were in London

by LLP Reporter
30th Nov 18 2:03 pm

Over 458,000 completions have taken place overall using one or more of the Help to Buy schemes. Some 402,000 of which were first time buyers.

Quarterly Help to Buy statistics released today (Friday 30 November) also show that:

  • first time buyers have now opened 1.2 million Help to Buy: ISAs, offering government bonuses of up to £3,000 on top of their savings
  • the average house price purchased through the schemes is £201,881
  • over 93% of completions across the Help to Buy schemes have taken place outside of London

John Glen, Economic Secretary to the Treasury said:

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.

James Brokenshire, Communities Secretary, said:

I am committed to making the housing market work for everyone and restore the dream of home ownership for a new generation.

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.

The most completions using the Help to Buy: ISA have taken place in the North West and Yorkshire & the Humber. In total, 169,980 completions have taken place across the UK since its launch in December 2015.

The London Help to Buy scheme – which provides an equity loan of up to 40% for buyers in the capital with a 5% deposit – has helped 13,697 buyers across 33 boroughs purchase their own property between February 2016 and June 2018.

Yomdel Business Growth Expert and CEO, Andy Soloman, commented:

“Positive news on the face of it, but many will be forgiven for remaining sceptical of the government’s Help to Buy initiatives. While these schemes are implemented with good intentions, they inadvertently exacerbate the current housing crisis by fuelling demand in a market where the government is failing to address the issue of supply.

For those aspirational buyers lucky enough to secure a property it has, at least, enable them to take that first step on the ladder. But as prices continue to increase as a result of this heightened buyer demand, the number of those able to utilise these schemes will diminish due to the restrictive thresholds – as demonstrated by the minuscule number sales attributed to London buyers.”

More than 183,000 completions have now taken place through the Help to Buy Equity Loan scheme, which offers buyers up to 20% of a newly built home’s costs so they only need to provide a 5% deposit. By March 2021, the government expects to have invested around £22 billion in the scheme, supporting up to 360,000 households into homeownership.

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