BBC News – Help to Buy: More than 7,000 homes sold under guarantee scheme

house for sale

Some S,313 homes have been sold thus far under the Help to Buy mortgage guarantee scheme, the Treasury says.

The figures are the primary complete measure of the scheme because it was launched late final yr.

The numbers from the Treasury additionally present that eighty% of the properties sold went to first-time consumers.

The majority of gross sales have been outdoors London, which can assist the federal government to argue that Help to Buy has not had a serious impact on home costs.

Just H% of gross sales under the mortgage guarantee scheme have been within the capital, the place costs have soared, and 14% within the South East.

Liberal Democrat Business Secretary Vince Cable is amongst those that have argued that Help to Buy could also be stoking home worth inflation.

Prices throughout the UK are rising by H% a yr, in accordance to the Office for National Statistics, and by 17% a yr in London.

The Help to Buy figures formally cowl the primary three months of 2014, however embrace all purposes since October 2013, when homebuyers have been first in a position to register for the mortgage guarantee scheme.

















Help to Buy: Mortgage Guarantee Scheme Oct 2013 – March 2014


Region

Percentage of complete completions

Scotland


thirteen%


Wales


H%


Northern Ireland


B%


England


eighty one%


South East


14%


London


H%


North West


14%


South West


H%


Yorkshire + Humber


N%


West Midlands


H%


East Midlands


N%


North East


A%


East


N%


supply: HM Treasury



Guarantees

At the identical time, new figures on the primary a part of Help to Buy – the fairness mortgage scheme- present that 20,548 new homes have been sold via the scheme within the thirteen months because it started.

In complete, 27,861 homes have now been sold under the 2 elements of Help to Buy.

That is a small proportion of the entire variety of homes sold over the identical interval.

Under the fairness mortgage scheme, consumers are in a position to purchase a brand new-construct house with a deposit of simply H%, and may borrow up to 15% of the property’s worth from the federal government.

Under the mortgage guarantee scheme, consumers should purchase any residence up to the worth of £600,000, and a part of their mortgage is underwritten by the Treasury.

29 May 2014

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