There has been plenty of talk over recent years surrounding the affordability issues within the UK property market. While house prices continue to rise and renting long-term becomes more common among the upcoming generations, it is not impossible to buy a home in the current market and it appears that the Help to Buy scheme has helped many across the line.
New figures released from the Government have revealed just how much of an impact the Help to Buy ISA’s have had on the market, after only being introduced a few years ago.
According to reports, over 1.2 million people have opened a Help to Buy ISA account and there have been just over 420,000 completions by buyers who are using one or more of the schemes set up to help them onto the ladder.
An estimated 365,400 first time buyers are now homeowners, claiming an average bonus of £800 through these schemes.
Help to Buy purchases have been popular throughout the country as a whole, but the North West has seen the most activity, showing over 20,000 completions in the last 3 months alone.
The scrapping of stamp duty in 2017 has also been a bonus for prospective homeowners, saving many first time buyers anywhere up to £5,000 on the purchase of their home and a total of £284 million has been saved so far.
In addition to this, there are also Help to Buy Equity loans. This scheme allows buyers to borrow 20% of a home’s value to put down as a deposit, as long as they can provide 5%. Help to Buy Equity loans have given just under 170,000 people a leg up onto the property ladder since their introduction.
Economic Secretary to the Treasury – John Glen – spoke on these figures, he said; “We’re helping a new generation of first-time buyers realise their dream of owning a home. Help to Buy continues to be hugely popular across the UK, with 420,000 people getting support so far. And with our stamp duty cuts and the lifetime ISA, we are delivering for first-time buyers.”