Nearly 40,000 first-time buyers used Help to Buy in first year
The Help to Buy schemes, launched by the government last year, have enabled nearly 40,000 people to buy their first home, according to official statistics.
Help to Buy consists of two schemes which enable people to buy a property even if they only have 5% of the purchase cost.
More than 48,000 people in total have taken advantage of Help to Buy in the scheme’s first year. The government has released a statement revealing some of the key figures:
• more than 80% of house purchases made using the scheme were made by first-time buyers
• the average price of houses sold was £187,800, which is significantly less than the national average of £265,000
• 94% of Help to Buy purchases were on houses outside of London.
One concern about the scheme is that it will make getting a mortgage too easy, and push house prices up too high - there was a 10% rise from June 2013 to June 2014.
The mortgage guarantee loans are restricted to 4.5 times the borrower’s income to try and keep a natural balance in the market, and also prevent buyers borrowing more than they can afford.
We will keep our clients informed of any developments.
Please contact Gary Baber if you would like information about the legal aspects of buying or selling a home.