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Help to Buy hailed an ‘instant hit’

Help to Buy hailed an ‘instant hit’

Category: Mortgages

Updated: 17/07/2013
First Published: 17/07/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The number of new-build properties reserved under the Government's Help to Buy Scheme has hit almost 7,000, three months after its launch, the housing minister announced yesterday.

Calling the scheme an "instant hit", Mark Prisk also said that Help to Buy was delivering a surge of business to the country's house builders, and that reservation numbers revealed the "huge appetite and pent up demand for homeownership among the public".

The scheme, launched in this year's Budget, aims to help up to 74,000 homebuyers over the next three years, representing 2% of the 3.4 million property transactions that the Office for Budget responsibility estimates will take place over the same period.

The second part of the scheme, the Help to Buy mortgage guarantee, set to be launched at the beginning of next year, will enable lenders to use Government-backed guarantees to offer £130-billion worth of mortgages to borrowers with deposits of as little as 5%, on new and existing properties.

Hailing the scheme as a success, Mark Prisk said: "With almost 7,000 reservations in three months, it's crystal clear that the Help to Buy equity loan has captured the public's imagination and is getting Britain building again, which will help achieve a long-term, stable housing market."

"So any credit-worthy buyer, whether a first-time buyer or someone looking to move up the property ladder, should contact their local Help to Buy agent and see if they could benefit from the scheme."

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