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Data shows Help to Buy is hitting the mark, says CML

Published: 2 September 2014

Combined purchases through the Help to Buy equity loan and mortgage guarantee schemes have accounted for a little under 6% of houses bought in the last 15 months, according to Treasury data published today. The data show that the schemes have been used almost exclusively to purchase moderately-priced properties, in all regions of the UK, with no undue focus on any particular area or price bracket.

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, completions appeared to have levelled off at around 4,000 a month. Equity loan purchases, which support housing construction, totalled almost 8,000 in the second quarter.

The data show that 79% of purchases with a mortgage guarantee were completed by first-time buyers (compared to 85% for those buying with an equity loan). The average price of property bought through Help to Buy mortgage guarantee was £153,148, compared to an average of £259,500 for all home purchases. Data published by HM Treasury showed 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%

 

Commenting on the latest data, CML director general Paul Smee said:

"It is reassuring to see the data confirming that Help to Buy is essentially delivering its intended objectives. The scheme is supporting new housing construction, and is being used extensively by first-time buyers to purchase average-priced properties in all parts of the UK."

 

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.2 trillion.

2.  A new set of tables will be published on the statistics section of our website.

3.  Government Help to Buy statistics are available from the Treasury - Help to Buy mortgage guarantee scheme quarterly statistics and DCLG Help to Buy (equity loan) scheme monthly statistics.

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