With the second anniversary of its inception having just passed, the Help to Buy scheme is remaining people with first-time buyers.
Latest figures show that that the number of homes purchased using the scheme is nearing 50,000. The statistics, compiled by the Department for Communities and Local Government showed that the average price of properties purchased using the scheme is now £212,932.
Since being introduced on April 1st 2013, 47, 018 properties have been bought as a result of Help to Buy assistance. The total loan value stands currently at £1.99b, with overall value of the properties sold at £10bn.
The most popular areas of Britain, where Help to Buy has been used more predominantly, are Wiltshire, followed by Central Bedfordshire, Peterborough, Milton Keynes and County Durham.
Help to Buy going strong two years on
Help to Buy Isa
It is hoped that the upcoming Help to Buy Isa will have the same success. This new initiative will see first-time buyers given an additional £50 for every £200 that they manage to save for a deposit. The scheme is limited to £3,000 on £12,000 of savings, with people only able to open one account. However, there are no rules limiting someone else in the same household from opening a separate account, meaning that couples can save and receive bonuses at the same time in different ISA’s.
There is also a cap on the overall value of properties that the bonus can be used to buy. This is £450,000 in London and £250,00 on homes outside of the capital. Banks or building societies will be able to offer their own interest rates for all Help to Buy Isa’s. The scheme will begin in the Autumn.