The Help to Buy* scheme is drawing to an end, so to mark the occasion we have some interesting facts about the scheme that you may not know.
The Scheme Is Almost 10 Years Old
The scheme was launched in April 2013, and was described as "the biggest government intervention in the housing market since the Right to Buy scheme". Help to Buy was an extension of a previous scheme called FirstBuy, and the new scheme worked so well, it was extended a number of times. Once in 2017, and again in 2020 where tighter rules and regional price caps were introduced. Help to Buy is now drawing to an end, with the scheme officially ending on March 31st 2023, and the deadline for reservations on October 31st 2022.
London Has Different Rates
If you’re looking to use Help to Buy for a property in London, you’ll already know that you have a different price cap to other areas. Meaning you can use the scheme on a home that costs up to £600,000, whereas in the North West for example, you can only use it on a home up to £224,400. What you may not know is that the government will also lend you more within the scheme itself. Help to Buy is made up of a mortgage, a government loan, and the buyer's deposit. For the rest of the country, the government offers between 5% and 20% for the loan, but for London, this goes up to 40%.
Over 355,000 Sales Using Help to Buy
In the almost decade the scheme has been running, over 355,000 house sales have been completed using Help to Buy, with 83% of those being from first-time buyers. There were just over 14,000 completions in the first year of the scheme, and 2019 was the biggest year, which saw 52,247 completions. Though this dipped a bit after Covid, there were still over 40,000 completions with the scheme in both 2020 and 2021. On average, a first-time buyer in England bought a home for £270,576, but focusing on London alone, first-time buyers on average were paying £433,843.
If you’re looking to snap up a Help to Buy property in East London, we have a number of stunning apartments that are near completion. With a riverside community living in a sought-after area, our homes are perfect for first-time buyers.
*Terms & Conditions
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT.
Credit is secured against your home. *Subject to status, Help to Buy Terms & Conditions and available on selected properties within London only. Eligible applicants will be offered an equity loan up to a maximum of 40% of the purchase price (based on the open market value). Applicants are required to fund at least 60% of the purchase price by means of a conventional mortgage, savings/deposit where required. The equity loan is provided by Homes England and held as a second charge. This offer is not available in conjunction with any other promotion. Full details will be provided on request.
