New figures published today (31 July 2014) show how the scheme is boosting the supply of new homes, with over 32,500 households buying new build homes through the equity loan and NewBuy options, with a further 7,300 sales though the mortgage guarantee.
Help for buyers and builders
Mr Lewis said today’s figures were further evidence that Help to Buy was doing exactly what it was designed to achieve: providing assistance to hard-working families while expanding and accelerating the supply of new homes.
Over 80% of sales have gone to first time buyers and been for new build homes. The direct result is a new generation of homeowners and a 34% increase in private housebuilding during the first year of the scheme.
Housebuilding has climbed to the highest level since 2007, while developers have pledged to use the momentum created by Help to Buy to continue increasing their output. The construction sector has grown for 14 consecutive months, and companies are now taking on new workers at the fastest rate for 17 years.
Mr Lewis said the government had expanded the range of available data about Help to Buy. Figures published today include, for the first time, sales data broken down by postcode and constituency, so communities, builders and businesses can see exactly how the scheme is benefitting their area.
Brandon Lewis said:
Almost 40,000 households have now achieved their dream of becoming homeowners through Help to Buy. Hard working families are getting the homes they want, while housebuilding has increased to its highest level since 2007.
It’s no accident that since the start of the scheme private housebuilding has shot up by a third and continues to climb. Developers are increasing their output, and taking on new workers at the fastest rate since records began.
And today, for the first time, we’re publishing data about each post code and constituency, so communities can see exactly how this vital part of our long-term economic plan is improving the housing market and helping their area.
Progress across the country
Sales of new build homes have been strong across the country:
the highest number of equity loan sales were in Wiltshire with 469, Leeds with 457 and Central Bedfordshire with 427
Milton Keynes, Peterborough, Bradford, Manchester, Country Durham, Bedford, and Birmingham have all achieved over 300 sales
27,167 sales have been completed in the first 15 months of the Help to Buy: equity loan scheme.
7,313 sales have been completed under Help to Buy: mortgage guarantee scheme (between 8 October 2013 and 31 March 2014). The mean price of a property bought under the scheme was £151,597.
5,388 sales have been completed under Help to Buy: NewBuy.
The average price of a home is far below the national average: £208,000 under the equity loan and £151,000 under the mortgage guarantee.