The truth about Help to Buy: Statistics reveal scheme is being underused
2 minute read
Using data collated from HM Treasury, a resource map has recently been created that reveals some surprising information about the government’s much-vaunted Help to Buy scheme. Most notable is the fact that 1,261 out of a possible 2,117 postcode areas in the UK have seen no Help to Buy activity whatsoever, despite the fact that 400,000 homes have been eligible for sale in that time.
The Help to Buy initiative was launched by Chancellor George Osborne back in April 2013, with the aim of getting young people onto the housing ladder. It works in one of two ways, either in the form of an equity loan (type 1) or through a government guaranteed mortgage (type 2). While there has been some success in areas, and over 52,00 complete purchases using the two options, there remains plenty of scope for improvement.
The map highlights the large blank spaces on the map where there has been no activity whatsoever, and it is these areas the scheme needs to target. Leicester is the city with the biggest success rate, with nearly 900 complete purchases using the initiative. MK42 in Bedford is the most used postcode area with 309 completions. Help to Buy type 1 lends purchasers up to 20% of the property value, requiring a 5% deposit and 65-75% mortgage. Type 2 gives access to government guaranteed mortgages, improving borrowing capability for many people.
Both options can be used on the hundreds of thousands of properties eligible across the country. It’s clear that more needs to be done to spread the word to people who could benefit from the scheme. Have you had any experience with the Help to Buy scheme or would it be something that you would consider to get you on the housing ladder?