Latest official figures reveal that the Help to Buy equity loan scheme is surging ahead, with there being over 15,000 reservations for new build homes in the first 6 months.
The scheme was launched in April this year and was intended to restore confidence in the housing market and help get people on the property ladder.
And it seems to have had the desired effect. Not only have there been 15,410 reservations for new build homes but house building is growing at its fastest rate for a decade, and the number of first-time buyers has reached a five-year high.
Under the scheme, homebuyers can buy a new build property with just a 5% deposit, facilitated by a Government equity loan of up to 20% on properties worth £600,000 or less.
The figures have been released the same week as the second part of Help to Buy, the mortgage guarantee element, has come into effect, whereby the Government will act as guarantor for up to 15% of the property price so homebuyers can get a 95% LTV mortgage from participating lenders.
Newly-appointed housing minister Kris Hopkins is encouraged by the figures, believing that the Government scheme has given the housing market a much-needed kickstart to drive up the rate of house building and enable hard working families to buy a home.
He said: "With over 15,000 reservations for new build homes in 6 months, it's clear the first part of our Help to Buy scheme, the equity loan, has captured the imagination of the public and is boosting the supply of new homes across the country."
"I'm delighted we've launched the second part of Help to Buy, the mortgage guarantee, which will strengthen the package of measures that have already done so much to restore confidence in the housing market."
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