Treasury data show Help to Buy is hitting the mark
Published: 9 September 2014 | Author: Bernard Clarke
The Help to Buy scheme is supporting new housing construction, and it is being used extensively by first-time buyers to purchase average-priced properties across the UK, data published by HM Treasury shows.
The Treasury figures confirm a high degree of take-up by first-time buyers, who accounted for 79% of transactions with a mortgage guarantee and 85% of purchases with an equity loan. The average price of property bought with a mortgage guarantee was just over £153,000, compared to an average of £259,500 for all home purchases
The data shows that, compared to total mortgage completions in each region, the mortgage guarantee scheme is supporting a higher proportion of purchases in the North West, the East and Scotland, and a lower proportion in London and the South East.
Help to Buy and wider mortgage market summary, April 2013 - June 2014
|Help to buy mortgage guarantee||Help to buy equity loan||All help to buy||all house purchase|
|Number of completions||18,564||27,167||47,681||807,100|
|Average (mean) value of property||£153,148||£207,967||£187,800||£259,500|
|Percentage of FTBs||79%||85%||82%||45%|
|Percentage outside London and the South East||81%||79%||80%||70%|
Combined purchases through the equity loan and mortgage guarantee elements of the scheme accounted for a little under 6% of all houses bought in the last 15 months.
In the second quarter of this year, the number of completions through the Help to Buy mortgage guarantee scheme increased from around 6,300 to 11,200. In May and June, however, transactions appeared to have levelled off at around 4,000 a month. Equity loan purchases, which support housing construction more directly, amounted to almost 8,000 in the second quarter.