The Help to Buy equity loan scheme has captured the imagination of the public with over 15,000 reservations for new build homes in the first 6 months.
On the first day in his new role, Housing Minister Kris Hopkins said the equity loan scheme, part of the government’s Help to Buy programme, had given the housing market a kickstart by driving up the rate of housebuilding and helping hardworking families buy a home.
Visiting a new housing development in Northampton with the Prime Minister, Mr Hopkins said government action to restore confidence to the housing market was working, with over a third of a million new homes built over the last 3 years, including 150,000 affordable homes.
Help to Buy expanding
Under the equity loan scheme buyers can purchase new build homes with just a 5% deposit, facilitated by an equity loan from the government of up to 20% on properties with a value of £600,000 or less.
Today (8 October 2013) the Prime Minister and Chancellor launched the second part of Help to Buy, the mortgage guarantee, which will also be available on existing properties with a value of £600,000 or less. Lenders will be able to offer a 95% loan-to-value mortgage, facilitated by a government guarantee to the lender of up to 15% of the value of the property.
Getting Britain building again
Latest figures show that:
- since the launch of the Help to Buy: equity loan scheme in April, there have been 15,410 reservations for new build homes, and nearly 30,000 hardworking people have bought a new build property through a range of government-backed homeownership schemes over the last 2 years
- housebuilding is growing at its fastest rate for 10 years, and housebuilders are pledging to build on the momentum created by Help to Buy
- housing supply is now at its highest since the end of the housing boom in 2008, with 334,000 new homes built over the last 3 years
- in the most recent quarter, housing starts were up by 33% on last year, and planning approvals for new homes were up by 45%. In the year to June 2013 88% of planning applications were approved, a 10-year high
- over 150,000 affordable homes have been delivered in England over the last 3 years, thanks to the wider affordable housing programme
- the number of first-time buyers is at a 5-year high, while the number of repossessions is at its lowest level since 2007
- mortgage arrears are at their lowest since 2008
Housing Minister Kris Hopkins said:
With over 15,000 reservations for new build homes in 6 months, it’s clear the first part of our Help to Buy scheme, the equity loan, has captured the imagination of the public and is boosting the supply of new homes across the country.
Our policies on housing are working: housebuilding is growing at its fastest rate for 10 years, and the tough decisions we’ve taken to tackle the deficit have kept interest rates low and are now delivering real help to hardworking people.
I’m delighted we’ve launched the second part of Help to Buy, the mortgage guarantee, which will strengthen the package of measures that have already done so much to restore confidence in the housing market.