The latest statistics on the uptake of the government’s flagship Help to Buy schemes were published on 30 March 2017. The figures show that over 259,000 homes have been bought since the schemes were first launched in October 2013. The portfolio of Help to Buy schemes include: ISA, Shared Ownership, Mortgage Guarantee, Equity Loan and London Help to Buy. The average house price across the schemes is almost £193,000.
The average house price to income multiple under the mortgage guarantee scheme is capped at a 4.5x ratio to ensure responsible lending. The London Help to Buy scheme was launched in February 2016 and is helping London residents to buy a new home with a 5% deposit and a mortgage as low as 55% for first time buyers as well as homeowners looking to move to a newly built home with a price tag of up to £600,000. The London Help to Buy scheme has been used by 2,381 buyers in the first 11 months since the scheme was launched.
The Help to Buy: ISA scheme was launched in December 2015 and so far over 868,000 accounts have been opened. The scheme allows savers to claim a government bonus of 25% on monthly savings of up to £200 on savings towards their first home. The bonus translates to an extra £50 added to every £200 saved up to a maximum governmental contribution of £3,000 on £12,000 worth of savings.
The Chancellor of the Exchequer, Philip Hammond, said:
'This government is committed to helping working people get on the housing ladder. Our Help to Buy schemes are proving hugely popular across the country. More than a million people are now using them to help achieve home ownership, particularly first time buyers.'