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Property News: Help to Buy: building new homes across the country
Almost 40,000 households have bought a home through Help to Buy, Housing and Planning Minister Brandon Lewis announced, on 31 July 2014. New figures just published show how the scheme is boosting the supply of new homes, with over 32,500 households buying new build homes through the equity loan and NewBuy options, with a further 7,300 sales though the mortgage guarantee.
Help for buyers and builders
Mr Lewis said today’s figures were further evidence that Help to Buy was doing exactly what it was designed to achieve: providing assistance to hard-working families while expanding and accelerating the supply of new homes.
Over 80% of sales have gone to first time buyers and have been for new build homes. The direct result is a new generation of homeowners, and a 34% increase in private housebuilding during the first year of the scheme.
Housebuilding has climbed to the highest level since 2007, while developers have pledged to use the momentum created by Help to Buy to continue increasing their output. The construction sector has grown for 14 consecutive months, and companies are now taking on new workers at the fastest rate for 17 years.
Mr Lewis said the government had had a part to play in expanding the range of available data about Help to Buy. Figures just published include, for the first time, sales data broken down by postcode so that communities, builders and businesses can see exactly how the scheme is benefiting their area.
Mr Lewis said: “Almost 40,000 households have now achieved their dream of becoming homeowners through Help to Buy. Hard working families are getting the homes they want, while housebuilding has increased to its highest level in seven years.
"It's no accident that since the start of the scheme private housebuilding has shot up by a third, and continues to climb. Developers are increasing their output, and taking on new workers at the fastest rate since records began.
“And today, for the first time, we’re publishing postcode level data about the scheme so that communities can see exactly how this vital part of our long-term economic plan is improving the housing market, and helping their area.”
Progress across the country
Sales of new build homes have been strong across the country:
the highest number of equity loan sales were in Wiltshire with 469, Leeds with 457, and Central Bedfordshire with 427.
Milton Keynes, Peterborough, Bradford, Manchester, Country Durham, Bedford, and Birmingham have all achieved over 300 sales.
An extraordinary 27,167 sales have been completed in just the first 15 months of the Help to Buy equity loan scheme.
7,313 sales have been completed under Help to Buy’s mortgage guarantee scheme (between 8 October 2013 and 31 March 2014). The mean price of a property bought under this scheme was £151,597.
And 5,388 sales have been completed under Help to Buy’s NewBuy scheme. The average price of a home with Help to Buy is far below the national average: £208,000 under the equity loan, and £151,000 under the mortgage guarantee.
For more information, visit: www.helptobuy.org.uk