New research from Fasthomes.org shows where the Help to Buy scheme has been most and least successful.
According to the Ministry of Housing, Communities and Local Authority, over 169,102 properties were brought with an equity loan since the launch of the governments Help to Buy scheme in 2013.
Whilst the value of these properties sold using the sold are estimated to be worth an enormous £42.23 billion. A whopping 81% of total purchases have been made by first-time buyers, and it has been announced that the scheme is set to run until 2021, although it has been under scrutiny with claims it is enabling people who can afford to buy without the equity loan to climb onto the property ladder with just a 5% deposit; thus, driving up property prices as a result.
Homelessness charity Shelter analysed the increased amount of mortgage lending in correlation to the scheme and concluded Help to Buy has increased the average home price by £8,250.
Fasthomes.org collated data from The Ministry of Housing, Communities and Local Authority to determine which counties in England have had the most and least completed Help to Buy equity loan property purchases.
The data was obtained by establishing which unitary authorities and county councils govern each county within England and then compiling the number of completed Help to Buy purchases from each governing body to work out the total sum within each county.
Fasthomes.org found that the following six counties had the highest number of completed:
- London (12,206);
- Greater Manchester (7,280);
- West Midlands (7,074);
- West Yorkshire (6,530);
- Cheshire (6,391) and Essex (5,915).
The counties which remain firmly in the middle with neither the highest or lowest number of property transactions include:
- Staffordshire (3,737);
- Cambridgeshire (3,631);
- West Sussex (3,578);
- Derbyshire (3,444);
- Nottingham (3,270);
At the bottom end of the scale, Fast Homes can reveal the counties with the lowest number of completed Help to Buy equity loan property transactions by the end of March 2018 are:
- Bristol (808);
- East Sussex (732);
- Herefordshire (309);
- Rutland (255); and
- the Isle of Wight (187).
Fast Homes also analysed the percentage increase each county has displayed since the start of the scheme. The counties with the highest increase in the number of homes sold under the governmental scheme include:
- Herefordshire (3000%);
- Oxfordshire (1460%);
- London (1360.53%);
- Norfolk (1064.29%); and
- Cumbria (766.67%).
Interestingly, although Herefordshire had the fourth lowest number of properties sold using Help to Buy equity loan, the county highlighted the most significant increase since the first quarter of 2013. As perhaps expected, London tops the list with the most properties sold under the Help to Buy Equity Loan since 2013.
When breaking down London’s boroughs, Barnet was discovered to have had the most properties sold with the scheme since 2013 at 914, followed by Havering (785) and Greenwich (732). In contrast, it comes as no surprise that Kensington and Chelsea had just 2 sales, City of London (2) and finally Westminster (32) ranking third from last.