The Help to Buy: Equity Loan scheme helped more than 60,000 people onto the property ladder in Q3 2015, according to the Department for Communities and Local Government (DCLG).
Showing anannual increase of 4%, 81% of the purchases were made by first-time buyers, with 50,969 b eing first properties.
Andy Frankish, NewHomes director at Mortgage Advice Bureau, said the scheme continues to reach its target audience of first-time buyers and commented on the new dedicated Help to Buy scheme for first-time buyers London:
“The introduction next year of a dedicated Help to Buy scheme for London, with an increased 40% equity loan, will be welcome news for first-time buyers struggling to afford to buy in the capital. The scheme will require a maximum 55% mortgage, rather than one at 75% loan to value.”
“While the equity loan scheme is well ingrained in the sales of new homes, and continues to evolve in response to buyer’s needs, more creative solutions that address underlying problems to housing affordability must be developed in addition to targeted schemes.
The greater focus being placed on shared ownership will help, as will the creation of Starter Homes, but these will need the full support of lenders to have the desired effect. Increased housebuilding will eventually deliver more homeownership opportunities.”