Help To Buy Property Sales Approaching £50 Billion Since 2013 Launch
50,302 residential property purchases were made using the Help to Buy: Equity loan scheme in England last year. This equates to almost 1,000 property completions using this scheme per week and represents an increase of 13% on the figures from 2017.
In total, 41,076 of the housing completions made using the Help to Buy: Equity Loan scheme were from first-time buyers and equates to a 14% increase in the scheme’s uptake from a year earlier.
Since the scheme’s launch in April 2013, 195,219 residential properties have been bought using equity loans up to 30 September 2018.
In total, £10.66 billion has been spent on loans funded by tax payers with the properties totalling £49.89 billion overall.
On average, buyers using the Help to Buy; Equity Loan scheme spent £255,542 per property with an equity loan value of £54,630, despite a contemporary UK property average of £230,776; which could suggest that buyers using this scheme are purchasing more expensive property or making offers in excess of the sale price.
81% (158,013) of completions using the Help to Buy: Equity Loan scheme were made by first-time buyers highlighting the success of the scheme with this section of the property market.
HM Treasury also released its figures on their Help to Buy: ISA scheme which suggests that the users of this government backed scheme are slightly younger (28) than the average UK home buyer (30).
In total, 194,379 property completions used this scheme since its launch in 2013. In comparison to the Equity Loan scheme, the average property bought cost £173,353; almost £50,000 cheaper than the UK average and over £20,000 cheaper than the average cost of a home bought by a first-time buyer (£195,404).
Mark Hayward, NAEA chief executive, said: “We are seeing increased sales to first-time buyers running at about 26% of sales, with the slowdown in buy-to-let purchases helping the first-time buyers to be in a more competitive position.
“Help to Buy, though, does not build chains as in effect the buyer is sucked out of the system.”
Do these figures suggest that initiatives for first-time buyers are helping the property market? What do these schemes mean for the conveyancing sector?