Introduced in April 2013, over 210,000 homeowners have since benefited from the use of this scheme, allowing them to purchase a brand new home with a 5% deposit, supported by a 20% Government loan. The total value of the loans amounts to £11.71 billion, with the value of the homes sold approximately £54.48 billion. Breaking these stats down, the current rate shows that the scheme is helping approximately 1,000 property purchases a week nationally.
Help to Buy is often associated more directly with First Time Buyers, but it is worth keeping in mind that anyone can benefit, so long as it is the only home a buyer owns, up to the value of £600,000, interestingly the average price of a current Help to Buy property (nationwide) is £258,223, demonstrating the popularity with First Time Buyers and Second Steppers. First Time Buyers unsurprisingly account for 81% of all Help to Buy transactions, but that does show that a number of other buyers are also taking advantage whilst this is still available.
Help to Buy is scheduled to come to an end in 2023, with restricted terms from 2021 whereby the scheme will only apply to First Time Buyers with regional price caps of circa £425,000. However, whilst the scheme is still available, it is increasing with popularity; in 2018 buyers using Help to Buy were up 12%. This increase reflects the vital role this scheme is playing in supporting buyers, particularly First Time Buyers, or indeed others looking to move up the ladder.
We have a number of new home developments currently offering Help to Buy, for more details, please click here. Alternatively, if you’d like more information on how much you may be able to borrow, or to find out if Help to Buy is the right option for you, our knowledgeable team will be happy to help, you can contact your local branch here.