The Home Builders Federation – the trade association representing private sector homebuilders in England and Wales – has reported today that the governments Help to Buy scheme has been an ‘unmitigated success’.
The report, ‘Bringing Home Ownership Back Into Reach’, shows that more than four fifths of homes (approximately 170,000) bought through the scheme in the last year were by first time buyers taking their first steps on the property ladder.
It estimates that 246,000 individuals are now property owners thanks to the scheme, with the median household income for those who have used the scheme in 2017 to be £49,000.
As the government looks into the validity of the scheme continuing beyond its proposed 2021 end date, the Federation says that it shows how it has achieved all the targets it was set at its launch five years ago. Specifically; to increase home ownership, house supply and to generate economic activity.
The report also dismisses claims that Help to Buy has driven up the price of new build houses, instead finding that the increase in price between new builds and second hand homes is consistent across the housing market as a whole.
What is striking is the suggestion that there is no evidence to suggest that the housing market will be able to support high LTV (loan to value) mortgages if the scheme were to be withdrawn, with only 3% of lending in the first quarter of 2018 being 90% LTV or above.
In addition to this the effect on the building industry has been historically notable, with housing supply increasing by 74% since the schemes launch, making it the fastest increase on record and at levels not seen since the 1950s, and the 48,000 homes bought through the scheme last year helped sustain around 150,000 jobs.
One 77 are Help to Buy specialists and have a team of expert advisers who are ready to help you take your first steps on the property ladder, and for those looking to remortgage their Help to Buy property. Call our Help to Buy Team on 01249 474952 or complete the form below and we will call you back at a time to suit you.
Announced in the March 2013 Budget, and bought into effect in April 2013, the Help to Buy scheme was assigned three primary objectives:
- to increase supply of low deposit mortgages for creditworthy households
- to increase the supply of new housing
- to contribute to economic growth
The Home Builders Federation is the national trade association for private sector house builders in England and Wales whose members deliver around 80% of new homes built each year.