There are now 130,000 new homeowners, thanks to Help to Buy
It appears that the government’s flagship scheme “Help to Buy” has worked for over 130,000 people since the scheme was launched. Figures reveal that it has gone right to the people that the government wished to help; some 80% of the completions that have been made have gone to first time buyers. The government is ls expecting more to be announced following the Help to Buy ISA scheme which was launched at the beginning of December.
The way the Help to Buy scheme, which was launched in 2013 works is that those who were working and saving for a deposit could, through government support, achieve their ambition to own their own home. As the figures have demonstrated, those it is helping are first time buyers, particularly outside of London where prices are well below the country’s average.
The new scheme is also expected to help first time buyers using the Help to Buy: ISA, currently being offered by banks and building societies across the UK. This works by helping savers who, if they save £200.00 per month, will receive a cash boost from the government of £50 for every £200, up to a maximum of £3,000 bonus. Currently there are 14 institutions that are in the scheme; Aldermore, Bank of Scotland, Barclays, Clydesdale Bank, Halifax, HSBC, Lloyds Bank, Nationwide, NatWest, Newcastle Building Society, Santander, Ulster Bank, Virgin Money and Yorkshire Bank.
Naturally the Chancellor George Osborne is delighted by the take up of the schemes pointing out the success of the help to Buy getting 130,000 buyers onto the housing ladder. The Help to Buy Mortgage Guarantee scheme, introduced during times of serious financial problems is due to end shortly and he suggests that the stronger economy means that banks will soon begin to withdraw from this.
House builders have been delighted at the lifeline that the Help to Buy threw them, and the Equity Loan scheme is also providing a much needed help and has seen a demand for new homes, the new house demand has in no small way reaped the benefit of having the Help to Buy scheme, which has created jobs and in turn helped the economy. The main beneficiaries of the Help to Buy scheme are in the North West, conversely the equity loan scheme, has seen the biggest take up in the South East sector of the country.