It’s no secret that buying your first home is difficult. It can take years, if it happens at all. But thanks to new Help to Buy schemes, over 80,000 people have been able to take that step onto the property ladder.
The Help to Buy equity loan and mortgage schemes have received a huge amount of interest. 94% of the homes bought with were outside of London, and over half of the people chose to use the equity loan scheme which can only be used on new-builds.
Help to Buy equity loan scheme users pay an average of £212,000 which is higher than the mortgage guarantee customers, who paid an average of £156,000.
Unsurprisingly, eight in ten people who used a Help to Buy scheme were first time buyers, paying an average of £185,000.
Despite the positive results, the Government announced that it’s closing the mortgage guarantee part of the scheme next year.
This could be due to the fact that the supply of homes under the Help to Buy scheme has fallen by 7.4% whereas house prices have risen by 5.5%.
Last year 48% of first-time buyers bought without help which is 14% higher than the statistics in 2011.