New figures show over 24,500 have bought new build homes through the Help to Buy equity loan scheme and NewBuy scheme and there have also been over 2,500 sales through the Help to Buy mortgage guarantee scheme.
The details shows that 9,394 sales were completed in the first 12 months of the Help to Buy equity loan scheme and the median price of a property bought under the scheme was £184,995, with a median equity loan of £36,999.
Some 2,572 sales were completed under the Help to Buy mortgage guarantee scheme between 08 October 2013 and 31 January 2014 and the mean price of a property bought under the scheme was £148,048.
Also 5,173 sales were completed under the Help to Buy NewBuy scheme between March 2012 and 31 March 2014.
The vast majority of sales under Help to Buy were made by first time buyers with 87.5% under the equity loan scheme and 82% under the mortgage guarantee.
Housing Minister Kris Hopkins said that figures are clear evidence that Help to Buy is creating a new generation of home owners and supporting the construction industry, which is building more homes in response to growing demand.
He pointed out that the data also shows that starts on new homes in 2013 were at a six year high and climbing, with starts on homes for private sale up 29% since the launch of the Help to Buy equity loan scheme, compared to the same period the year before.
For the equity loan scheme the highest number of completed sales were in Leeds with 337, Wiltshire with 316 and Central Bedfordshire with 287 while Milton Keynes, Peterborough, Bradford, Manchester, Country Durham, Bedford, Birmingham, Aylesbury Vale, Kingston upon Hull and South Gloucestershire all achieved over 200 sales.
Under Help to Buy NewBuy the highest number of sales was in County Durham with 110, Gateshead with 84 and Basingstoke and Deane with 83.
‘Thousands of people have now achieved their dream of becoming home owners through Help to Buy. Hard working families are getting the homes they want, while house building is at its highest level since 2007 and climbing,’ said Hopkins.
‘It’s clear evidence our long-term economic plan is working. But there is still more to do, and we will continue to prioritise resources to improve the housing market,’ he added.
Industry reaction has been positive. According to Richard Sexton, director of e.surv chartered surveyors, Help to Buy has helped turn the mortgage market around.
‘Just 12 months ago many prospective home owners found themselves stuck on the sidelines of the property market, unable to raise the deposit they needed to make the first move into the arena. Help to Buy has provided the solution, and nine out of ten of those who have benefitted have been first time buyers. In fact, March this year saw the most first time buyer sales since before the recession struck,’ he pointed out.
‘Buying a house is becoming a much more attainable aspiration for many. One in six loans are now to high loan to value borrowers, as high LTV mortgages have become more accessible and rates have remained relatively low. But there are still challenges to be resolved,’ he explained.
‘The equity loan scheme has increased appetite for new build property, but there is still a shortfall in housing stock. This has led to increased competition between buyers, which has been pushing prices upwards. To counter this, more construction is needed to satisfy the demands of prospective buyers. Planning regulations should be eased, and builders given more support and incentives to facilitate the necessary vision of a new build future,’ he added.
