Over half a million open Help to Buy: ISA

Government Help to Buy scheme has helped over half a million people save towards buying a home.

Over 500,000 people have opened Help to Buy: ISAs, which offers government bonuses of up to £3000, as they save towards buying a home.

Since the launch of the Help to Buy equity loan, mortgage guarantee and ISA schemes, over 160,000 completetions under the scheme has taken place, with 80% having been made by first time buyers- the target market.

With support from the Help to Buy scheme, the average house price being purchased is £189,795 – significantly lower than the national average.

A total of 94% of Help to Buy completions have taken place outside London, and over half of Help to Buy completions have been for new build homes.

The highest number of homes completed through both Help to Buy: ISA and mortgage guarantee schemes has been in the North West region.

Charles Holland, Head of Residential Investment at Marsh & Parsons, comments: “After peaking in the final quarter of 2015 after further encouragement from the government, the number of Help to Buy completions tailed off in the first three months of this year. This brings the total number of properties purchased using the equity loan scheme above 80,000 which is a not insignificant amount, but it’s worth bearing in mind that fewer than 5,000 of these transactions have occurred in the capital. Given the continual draw of London as an employment and lifestyle hub, this is obviously problematic.

“Since the start of February, Help to Buy applicants within Greater London have been able to claim an equity loan of up to 40% of the purchase price of a property, but just 256 buyers made use of this by the end of the first quarter. This shows that while the scheme is helping some people take the first step on the property ladder, it is still a drop in the ocean of what is required to truly get young Londoners moving. Such initiatives are welcome, but until the fundamental issue of the housing supply shortage is fully addressed, nothing will truly change.”

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