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Help to Buy Scheme Hailed a Success in Last Four Months

The UK’s Help to Buy scheme has seen success over the last four months as 10,000 reservations for new build homes have already been made. The scheme, designed to boost the UK property market, has already increased consumer confidence and encouraged many new buyers to jump on the property ladder.

In addition, the Help to Buy scheme has also encouraged many new house builders to begin developments which has increased the supply of new housing to its highest level since 2008. Approximately one third of a million additional homes have been built over the last two years alone. There has also been a surge in interest from first time buyers. The number of first time buyers is at its highest levels since 2007 and is still on the rise indicating that many have been encouraged by the government schemes available. In addition, £19.5 billion of public and private funding is being spent on affordable housing. Mortgages are now more affordable with wide ranges of new products coming onto the market regularly.

Overall, the government aid appears to be having a positive effect on the UK housing market with more affordable mortgages available, house building on the rise and a fundamental increase in interest among first time buyers. As a result, over 10,000 reservations have already been made over the last four months for new builds indicating that the Help to Buy scheme is already helping deliver a sustainable increase in housing. A number of families and young buyers may now be able to set foot on the first rung of the housing ladder as a result, which, for many, was unachievable in the recent past.

The Help to Buy Equity Loan for new build properties will allow buyers to receive a 20% loan which will be interest free for five years. Buyers must already have good credit and, those who do, will be able to use the loan to purchase a new build property with a value up to £600,000. Already, 3,000 sales have been completed and the scheme looks set to help over 74,000 home buyers over the next three years. The Help to Buy mortgage guarantee scheme will launch in January 2014 and will enable lenders to offer £130 billion worth of mortgages with deposits as low as 5%. The funding also looks set to create more opportunities for employment which will further stabilise the economy.

Buying Houses since 1972