The government’s Help to Buy Schemes continue to be used by home buyers keen to get into the housing market. 2017 was an busy year with over 32,000 new-build homes purchased using the Help to Buy Equity Loan Scheme. This reflects a 23% increase over the previous year.
In addition to Help to Buy Equity Loans, the government also introduced the Help to Buy ISA Savings Scheme two years ago and the attractive incentives available to first-time buyers has not been lost on many.
In total, some 350,000 people have now used one of the various government initiatives introduced to help people onto the property ladder. Of course, there are other benefits, including the support of the housing market and house builders in particular.
The Help to Buy Scheme helped buyers by lending up to 20% of their new home’s value (40% in London) by way of a government backed loan at zero interest for the first five years!
This has helped many in the South East to access the housing market and benefit from a growth in house prices. Others in areas with less buoyant markets may not have benefited too as great a degree and as interest starts to be charged on the first loans in 2018, it will be interesting to see how this affects the market.
The figures seem to illustrate that house prices in the first-time buyer sector are rising faster than wages, which would seem to suggest that the scheme is, in large part, responsible for the support of the housing market and the inflation of prices in this sector. With over £35 billion worth of property now subject to support from over £7 billion worth of government loans, the impact on the market is certainly not insignificant.
For more details see our Help to Buy Loan Scheme page.
For more information or to speak to a Help to Buy mortgage expert, contact us on 01628 507477.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
Data from Rightmove shows that Sunbury-on-Thames in Surrey was the number one house price hotspot in 2024. The prices in this area climbed an impressive 12.5% - increasing from an average price of £527,005 in 2023 to £592,926 in 2024.
Buy to Let Stamp Duty Changes April 2025
3 days ago
On the 31st October 2024 stamp duty for those purchasing additional properties increased by 2% from 3% to 5%.
From 1st April 2025 the threshold will be reducing from £250,000 to £125,000
Where did Londoners move to in 2024?
8 days ago
Research from Metro shows that those who chose to move home didn’t actually move that far away. With a 430g pack of chicken costing on average almost double in London than the rest of the UK, it's no wonder some people are choosing a change of scenery to save a few pennies.
Reasons to get a Buy to Let Mortgage
12 days ago
Following recent changes in the Buy to Let market, some investors may find this product less appealing. However, if done correctly, building a buy to let portfolio can be very profitable.
Stamp duty: how is it changing in 2025?
25 days ago
Helping you understand the upcoming changes in stamp duty (SDLT) from April 2025.
UK homebuyers and homeowners are hoping for stability in 2025.
We are hoping that mortgage rates will ease this year, but how drastically depends on inflation trends, swap rates, and the Bank of England’s decisions in which way the base rate should go.
Budgeting over the Christmas Period
3 Dec 2024
The most wonderful time of the year can easily turn into the most expensive time of the year. Watching the pennies doesn’t mean that the Christmas festivities have to stop, following a few budgeting tips can mean you still have a special Christmas and don’t go into the new year in debt.
Preparing your home to sell in winter
29 Nov 2024
December is usually a less desirable time to buy as many people don’t want to move over the holidays. However, prospective buyers do start to look at this time. Selling your home in winter may require a bit of extra attention to showcase your property at its best.
More information
Trusted by
