Why Help to Buy?

Getting your foot on the property ladder isn’t easy. After the recession, renting seemed like the only affordable alternative to home ownership.

However over recent years, buying patterns have started to change.  Following the introduction of the government’s Help to Buy scheme, we’ve witnessed a major increase in the number of private homes being built. Reports suggest that since its launch in 2013, home building has increased by 34%, and housing starts have increased by 113%, the highest since 2007.
  
The initiative has opened new doors to potential home owners through its support in lending.
 
Help to Buy

The Help to Buy scheme helps first-time buyers get on the property ladder and current home owners take the next step in property ownership.

This is done through either an equity loan or mortgage guarantee. Both schemes have the same outlook; helping buyers to secure a mortgage with a 5% deposit.

The equity loan is only available for new build homes, whereas mortgage guarantees are available on both new build and pre-owned homes. For more information, the below infographic from Barratt Homes provides an easy-to-follow breakdown of the two schemes.

The impact of the initiative has seen positive results. For instance, there’s been an 11% rise in the number of new homes started during first quarter of 2014, compared to the last quarter of 2013. With Help to Buy, lifetime renting isn’t the only option.