Statistics from the Department for Communities and Local Government revealed that 14,823 properties in England were purchased through the scheme in its first 10 months, with the total value of the loans numbering £600m.
The equity loan portion of Help to Buy offers prospective homebuyers an interest-free loan for five years on a new build property with a maximum value of £600,000.
Customers can get a maximum equity loan of £120,000, or 20 per cent of the value of a home, with a 5 per cent deposit.
Data from the department revealed that 89 per cent of home purchases made under the scheme were by first-time buyers, while the rate of completed house sales increased towards the end of 2013, with completions rising from 2,133 in November to 3,410 in December.
The total value of properties sold under the scheme was £3.01bn, while the average price of a property bought was £184,000, with an average equity loan of £36,599.
Adviser View
Andy Frankish, new homes director at national advisory firm Mortgage Advice Bureau, said: “Help to Buy equity loans are clearly doing their job. Momentum is building and lenders can help the cause by focusing more products on the new build market – not just equity loans but 95 per cent mortgages too.”
