Housing Minister Kris Hopkins praised the response to this renewed confidence in the housing market, and urged more builders to get on board to offer the scheme on their new homes.
Visiting the new Brockholes housing development in Yorkshire, Mr Hopkins was able to see first hand how the Help to Buy was not just helping more families into homes but also boosting building and stimulating wider growth; creating jobs and helping local business.
A boost to building, business and buyers
With over 15,000 reservations for new build homes since the launch of the Help to Buy: equity loan 6 months ago, builders everywhere have been rising to the challenge and delivering homes the country needs.
It is not just large developers charging forward, of the over 900 builders planning to offer the Help to Buy equity loan scheme over 600 - over 80% - are smaller builders, building less than 40 homes.
This includes the Brockholes development which the government unlocked with a £1.1 million commercial loan through the Get Britain Building programme, and has built 18 new homes in the Kirklees area.
But this scheme is not just helping aspiring homeowners, with many of the suppliers based within a 15-mile radius of the site this is also creating local jobs and a boosting local business.
On site the minister met the contractors and workers that had been able to get back on with their job of building homes as a result of the site being kick-started back into action by government funding.
In addition to the Help to Buy, housebuilding in Kirklees has been stimulated as a result of £6.9 million government investment which is set to deliver 362 new affordable homes.
Housing Minister Kris Hopkins said:
It’s great to be in the North to see how the government’s work to boost house building is making a nationwide impact and giving confidence to this beautiful part of the country.
The Help to Buy equity loan scheme is, not just helping thousands of buyers onto the property ladder but is making an important contribution to people’s lives creating jobs, boosting local business and stimulating the economy.
It is essential that places like Yorkshire are not just hanging on others’ coat tails but at the forefront, helping to lead the charge from a local level.
The Brockholes development is doing just that. I want to see this echoed across the country and with more small builders signing up I am confident that this can happen.
Director for North East, Yorkshire and the Humber at the Homes and Communities Agency David Curtis said:
We are really pleased with the progress of the Help to Buy equity loan scheme. It is proving to be a welcome addition to affordable home ownership options for purchasers across England, and is having an impact on supply. It is especially encouraging to see the number of smaller house builders who are participating in the initiative and helping to maximise the range of homes available though the scheme.
A further boost to house building is being delivered thorough the £12 billion Help to Buy mortgage guarantee. The scheme is creating greater market confidence and offering another avenue of opportunity for aspiring homeowners frozen out of the market.
Under the scheme, buyers will only need a deposit of as little as 5% and depending on the size of deposit, the government will then guarantee up to 15% of the property’s value.