Help to Buy: helping 100,000 buy a new home

Help to Buy, the government’s flagship housing scheme, has helped almost 100,000 people buy a new home since it was introduced.

Since the launch of the Help to Buy equity loan and mortgage guarantee schemes:

  • 80% of scheme completions have been made by first-time buyers, with more expected when the government’s Help to Buy ISA launches this autumn
  • the average house price was £184,000, significantly below the national average
  • almost 94,000 people have bought a home through the scheme
  • 95% of Help to Buy completions took place outside of London
  • over half of Help to Buy completions have been for new-build homes

Help to Buy: equity loan and Help to Buy: mortgage guarantee were launched in 2013 to support hard-working taxpayers who could pay a mortgage, but couldn't afford the high deposits demanded by lenders in the wake of the financial crisis.

Together with the government’s Help to Buy: NewBuy scheme – which offered 95% mortgages for those buying new-build properties - the number of new home owners has reached almost 100,000 (99,601).

The scheme also continues to benefit first-time buyers overwhelmingly, with the vast majority of sales outside of London and at prices well below the national average.

Help to Buy is also ensuring the long-term health of the housing market by increasing housing supply, stimulating home building. Over half of the homes bought through Help to Buy are new-build properties, helping to contribute to the 41% rise in private house building in England since the launch of Help to Buy.

First time buyers

As today’s statistics show, Help to Buy (mortgage guarantee and equity loan) is helping people who need it most, with over seventy thousand households having bought their first home thanks to the scheme.

This is 80% of overall Help to Buy buyers, demonstrating that the scheme is successfully targeting those who need help getting on the housing ladder, despite only accounting for a small proportion of the mortgage market (3% for both mortgage guarantee and equity loan).

First time buyers will have a further boost from the Help to Buy ISA, which the Chancellor announced in the March Budget. Under this scheme, first time buyers can save up to £200 a month towards their first home and the government will boost their savings by 25%, or £50 for every £200, up to a £3,000 bonus.

Housing Minister Brandon Lewis said: “Anyone who works hard and aspires to own their own home should have the opportunity to turn their dream into a reality. Today’s figures show how the government’s Help to Buy scheme is turning those dreams into reality, with nearly 100,000 people helped to own a home of their own, each needing just a 5% deposit. And with the Equity Loan scheme extended to 2020, even more people will be able to follow in their footsteps.

Help to Buy is available on selected properties at our Woodland View & The Avenue developments.

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