More than 112,000 completions have now taken place through the Help to Buy Equity Loan scheme, which is available exclusively for new build properties.
Andy Frankish, New Homes Director at Mortgage Advice Bureau (MAB), said, “Given the popularity of the Help to Buy scheme, with the figures released from DCLG this morning showing both a record quarter and year for completions in England, it’s important for the housebuilding sector to understand what the government’s intentions are for Help to Buy Equity Loans post 2021, as soon as possible.
“In build terms this is not far away, and developers will be looking at post-2021 build programmes now. Therefore, it’s essential that we maintain the current, successful momentum of the scheme and continue to increase output. However, understandably so, builders will only commit to continue the increase in volumes if they have the confidence that their plans will be supported, and that customers can purchase the new homes that they intend to build, which is why definitive action from the Government in a timely manner regarding Help to Buy, is so important.”
Home Builders Federation Executive Chairman Stewart Baseley added, “Help to Buy is absolutely central to the big increases in housing supply we have seen over the past few years.
“Helping people who otherwise would not be able to purchase a home provides the confidence builders need to invest in recruiting and training new staff to ramp up production and bring forward new sites.”
Over 259,000 completions have taken place using one or more of the Help to Buy schemes, and the majority of these are first-time buyers. The average house price across the schemes is £192,854, which is below the national average of £220,000.
Philip Hammond, Chancellor of the Exchequer said, “Our Help to Buy schemes are proving hugely popular across the country. More than a million people are now using them to help achieve home ownership, particularly first time buyers.”
Gavin Barwell, Housing and Planning Minister, added, “As our Housing White Paper sets out, we’re committed to helping more people find a home of their own with the support of a range of low-cost home ownership products. Our Help to Buy: Equity Loan scheme continues to make home ownership a reality for thousands of people, especially first time buyers right across the country.”