Early launch of Help to Buy

David Cameron will officially launch Help to Buy today, three months earlier than originally planned.

He said on twitter this morning: “I’ll be launching #HelptoBuy later-it’s wrong that many people on the average wage can’t buy the average house or flat. We are helping them.”

The final scheme rules were published today allowing lenders to sign up to the scheme and start offering mortgages under the scheme.

RBS, Lloyds, HSBC, Virgin Money and Aldermore have already announced that they will participate in the scheme.

A written statement from the Chancellor of the Exchequer said: “The Government is committed to supporting people who aspire to become homeowners.

“Since the financial crisis, increased deposit requirements and falling equity values have left many hardworking households unable to get onto the housing ladder or trapped in homes unsuited to their aspirations and needs.

“This has particularly impacted first time buyers, who have found it increasingly difficult to purchase their own home.”

The Help to Buy: mortgage guarantee scheme is open to all lenders with permission to enter into regulated mortgage contracts in the UK.

Sue Foxley, Head of Research at Cluttons, said: “Driving ahead with the second stage of Help to Buy is a certainly a bold move by the Prime Minister and reinforces his commitment to bolstering the property market, however, he needs to be careful to not exacerbate the housing challenge faced by aspiring home owners."  

The scheme has not been without controversy with many coming out to express concerns about the impact it will have on house prices and the wider housing market.

What do you think of the announcement? Do you have concerns about the scheme? 

Today's Conveyancer