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Over a million used Help to Buy

Words: Laura Edgar
New houses / iStock

More than 868,000 have opened a Help to Buy ISA while at least 259,000 people have bought a home using another of the government’s Help to Buy schemes, according to government statistics.

Most of the 259,000 people who have bought a home were first-time buyers.

The average house price across the Help to Buy schemes are £192,854, which is below the national average of £220,000, the statistics suggest.

Philip Hammond, Chancellor of the Exchequer, 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.”

There are three Help to Buy schemes

• Help to Buy ISA – provides first-time buyers with £50 for every £200 saved. Maximum bonus on completion of property purchase is £3,000.
• Help to Buy Equity Loan – offers 20 per cent off the cost of a new home so only a 5 per cent deposit is needed.
• London Help to Buy – provides an equity loan of up to 40 per cent for buyers in the capital with a 5 per cent deposit.

Gavin Barwell, housing and planning minister, added: “As our housing white paper sets out, we’re committed to helping more people find a home of their own with the support of a range of low-cost home ownership products.

“Our Help to Buy Equity Loan scheme continues to make home ownership a reality for thousands of people, especially first-time buyers right across the country.”

The statistics suggest:

  • 112,000 completions have taken place through the Help to Buy Equity Loan scheme, which offers buyers up to 20 per cent off a new built home and up to 40 per cent in London, so a 5 per cent deposit is required.

  • 45,098 completions across the UK using the ISA have taken place since its launch in December 2015.

  • 2,381 buyers in the capital across 31 boroughs also benefited from the London Help to Buy scheme between 1 February 2016 and to 31 December 2016.

Image credit | iStock