Finance News

Government boosts Help to Buy funding by £10bn

|
2nd October 2017
"It is interesting to note that the Government has specified this funding is largely aimed at first-time buyers, this could be an early sign of intent for potential changes to the scheme."

The government has announced that it will invest a further £10 billion in the Help to Buy Equity Loan scheme.

It estimates that the funding could help around 135,000 more people to buy homes by 2021, based on the 130,000 completions which have already taken place under the scheme.

Latest figures show that around 81% of home purchases using the equity loan scheme have been made by first-time buyers, helping the total number of first-time buyers to increase by 70% between 2010 and 2016.

Craig Hall, New Build Manager at Legal & General Mortgage Club, commented: “It is very welcoming news that the Government has announced an additional £10 billion of funding for the Help to Buy scheme. Following last week’s Help to Buy figures being released, this is recognition of the fundamental role the scheme has played, particularly in helping first-time buyers onto the housing ladder, with an estimated 228,000 people using the scheme and a 52% increase in net supply.
 
“It is interesting to note that the Government has specified this funding is largely aimed at first-time buyers, this could be an early sign of intent for potential changes to the scheme. Although this funding will be reassuring for developers and lenders, we are still to receive the full detail on the funding and eligibility which is crucial for long-term planning. With further announcements likely to be made at the Autumn budget, this is good early indication from the Government of their intent to help thousands more to secure the chance of homeownership.”

Jeremy Leaf, north London estate agent and former RICS residential chairman, added: "Too much emphasis on the demand side and not enough on the supply will only push up prices further and make property even more expensive for those who we are trying to help the most i.e. lower income first-time buyers. We will certainly be looking for some announcements to improve the supply side to balance the equation much more fairly than it appears at present and then we may see some meaningful progress to increasing the availability of truly affordable homes."

Related articles
More from Finance News
.