SALES NEWS: Help to Buy doing its job
Government figures show that the Help to Buy equity loan scheme has generated 32,268 sales since its launch in April last year. The scheme enables buyers to purchase a new-build property valued at under £600,000 with just a 5% deposit and a 75% mortgage – the government will lend the remaining 20% of the value by way of an equity loan.
The scheme is open to all buyers of new-builds, not just first time buyers, and some critics had feared that it would be existing homeowners who profited most from the scheme. However, the figures covering the period from 1 April 2013 to 31 August 2014 show that 84% of Help to Buy transactions were to first time buyers, with the average purchase price paid being £210,269. It’s good news for the sustained stability of the housing market.