Help to Buy sees 4000 reservations

According to the Home Builders Federation (HBF) around 4000 people have reserved a new home using the Equity Loan part of the Government’s Help to Buy scheme.

More than 400 builders have registered for the Equity Loan scheme which launched on April 1.

Under the scheme the Government will help purchasers of new build homes secure a mortgage with at least a 5% deposit by granting an equity loan of up to 20%.

The HBF estimate house building levels in England are currently at about half that needed to keep up with demand.

Stewart Baseley, Executive Chairman at the Home Builders Federation said:“The Equity Loan part of Help to Buy has got off to a flying start.

“It has been an unqualified success so far and 4000 reservations in just two months shows both the consumer demand for the scheme and developers’ commitment to it.

“The large deposits required in recent years to secure a mortgage have prevented many from buying — and as a result, builders from building.”

Mark Clare, Chief Executive of Barratt was also quick to praise the scheme: “Post the Budget announcement, compared with last year, we saw reservations step up 18% and visits to the Barratt website increase by around 30%.

“Our production will rise to meet higher levels of demand and it’s likely that our completions this year will be up 20% on 2 years ago.

“We are investing in land and bringing it through planning too and we are also expanding the business by taking on 600 new apprentices and graduates to tackle the skills shortage that could constrain future growth.”

Today's Conveyancer