Help to Buy statistics prove a success for first-time buyers

In a time when people are finding it increasingly difficult to save for a house deposit, recent Government statistics show that over 420,000 people have successfully bought homes using the various Help to Buy schemes.

In particular, the Help to Buy ISA scheme has had a significant impact on savings. The scheme boasts that 196,007 bonuses were paid to people saving in the ISA; this equates to an average of £800 per saver. This is a significant amount for anyone grafting to scrape a deposit together.

Kit Malthouse MP, Minister of State for Housing, said: “This government is committed to helping more people get on the housing ladder, restoring the dream of home ownership for a new generation.

“Our Help To Buy: Equity Loan scheme has made this a reality for tens of thousands of households across the country, helping almost 170,000 households purchase their home.”

146,753 completions were made through using the ISA scheme. Similarly, 160,102 used the equity loan scheme. In total, over 420,000 people now own property because of these various schemes.

81% or 136,657 of those that used the equity loan scheme were first-time buyers.

A startling statistic for the property market was the older age of people using the Help to Buy schemes. Although the average age of a person using the ISA system was 27, the majority of people using the scheme was above this figure.

Staggeringly, 77% of people using the Help to Buy ISA system were aged over 25. 67% of people using the ISA system were aged 25-34, with 10% aged 35-49. These statistics highlight the difficulties people are having in acquiring property when over 40,000 people aged over 34, using the scheme, require this help to gain a foothold on the property ladder.

The highest proportion of property completions with the support of the scheme was found in the North West of England where 14% of the people that used Help to Buy or 20,120 completions were made in this region. Yorkshire and The Humber also made up 10% or 15,242 completions.

However, Northern Ireland struggled to benefit from the Help to Buy schemes with only 2% or 3,634 using the ISA service.

Interestingly, the mean value of a property purchased through the scheme was £172,448 compared to an average first-time buyer house price of £188,429 and a national average house price of £228,000. This could imply that those using the scheme were looking to buy property or could only afford property significantly below the national average.

John Glen, Economic Secretary to the Treasury, has commented: “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.”

In a time when it is harder than ever to own property; when property has increased by 160% in the past 20 years, but wages have only risen by around 20%, it is important that the Government understand that help is a prerequisite; help is a responsibility. Without assistance like this, a generation will continue to uncomfortably walk this earth without capital and without the ability to put down roots.

You can find the Government publication here

Are you seeing more people buying through the use of the Help to Buy schemes? Do schemes like this go far enough in helping people?

 

 

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