Help to Buy loans hit new highs
Help to Buy loans peaked at 7,588 in June, more than double the average of the previous five months, government figures reveal.
There was £493m in equity loans for the month, contributing to sales of £2.2bn.
It brings the total loans to £9.9bn, with 183,947 purchases and house sales of £46.5bn since the launch of the equity loan scheme in 2013.
Help to Buy loans peaked at 7,588 in June, more than double the average of the previous five months, government figures reveal.
There was £493m in equity loans for the month, contributing to sales of £2.2bn.
It brings the total loans to £9.9bn, with 183,947 purchases and house sales of £46.5bn since the launch of the equity loan scheme in 2013.
First-time buyers have dominated this usage, making up 81% of loan completions.
Across all Help to Buy schemes, more than 93% of completions occurred outside of London, with an average house price of £201,881. Under the current scheme the average house price is £252,888, with an average equity loan of £53,793.
In the three months ending in June, the average house price has climbed to £441,920 in London, compared to £272,084 outside the capital.
The loan, which can be used to purchase a new-build property of up to £600,000, has been used to purchase 14,867 homes in this quarter. This compares to some 40,550 new-build homes completed, making up an effective 37% of new builds, up from 19% in the first quarter of the scheme.
Help to Buy has long been a source of finance for homebuyers, helping to bolster housebuilder income, but the government is winding down the scheme, which will expire in 2023.
In the 2018 Budget, chancellor Philip Hammond announced the extended deadline for the scheme and said it would be broadened to include shared-ownership purchases, but restricted to first-time buyers from 2021.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
