One Year Of Help To Buy
The Help To Buy scheme launched by the Government is now a year old so what effect has it had on the property market?
For those who don’t know the scheme was launched in two parts; the Mortgage Guarantee Scheme and the Equity Loan Scheme which allowed existing home owners and first-time buyers to purchase a property with as little as a 5% deposit.
A Happy Birthday?
After the first 12 months many are hailing the Help To Buy scheme as a success as it has allowed over 17,000 homes to be purchased adding an injection of transactions to help boost the UK property market. Looking back on the first year of the scheme we can also see that a fifth of all homes built since April 2013 has been sold through the new scheme.
The Government are so happy with the way the scheme is performing that they have announced that it will be extended by three years to 2020.
MP Eric Pickles has also written about how Britain needed the Help To Buy scheme as getting on the property ladder in 2010 “was no longer the case for most young people.” He went on to say that due to the new scheme the public “have voted with their feet, and this success has been shared across the whole country.”
What About The North?
There were fears that the scheme would cause a housing bubble but this hasn’t proved to be the case and in the North East results have been positive. During the first year of the scheme one in three new homes sold in the North East were done so courtesy of the Help To Buy Scheme (source: Countrywide).
In Newcastle alone, almost half of the new private homes built in the past 9 months have been sold using the equity loan scheme (source: The Telegraph).
This has in turn benefitted the North East economy and our construction companies with close to 500 new build homes being sold via the scheme during the first year (source: Northern Echo).
If you would like more information about the Help To Buy scheme please visit our dedicated page here or contact your nearest George F White office and speak to one of our experts in the agency department.