In the first 14 months, to the end of this May, there were 22,831 properties bought with the support of the Help to Buy: equity loan scheme.
A total of 2,283 properties were bought with the support of the Help to Buy equity loan scheme in May, statistics released by the Department for Communities and Local Government reveal.
According to the statistics, the majority of sales were to first-time buyers, representing 86 per cent of total sales, and the average (mean) purchase price was £206,084.
The top five local authorities in terms of legal completions were Leeds, Wiltshire, Central Bedfordshire, Milton Keynes and Peterborough.
Under the first part of the scheme, launched in April 2013, the government provides equity loans on homes of up to £600,000 where buyers only need a 5 per cent deposit. A loan of up to 20 per cent means a borrower only needs a mortgage of up to 75 per cent.
A report by the Public Accounts Committee published earlier this month revealed that the first phase had failed in its objectives and was rolled out in a manner that “violated” Treasury rules demanding consideration of viable alternatives.
The latest Help to Buy statistics come after yesterday the Financial Conduct Authority published a report which recommends regulators ensure mortgage lenders limit the amount their customers are able to take out as a mortgage to no more than four-and-a-half times their income.
In a highly anticipated move, it recommends that no more than 15 per cent of a lender’s book can account for such high loan-to-income multiples.
The FCA said that following the FPC’s recommendations, it will consult on general guidance which will provide details on how it proposes to follow the loan to income ratios.
The FCA said in a statement: “This will only affect a small number of FCA regulated firms so general guidance is considered a proportionate and appropriate approach to implementing the loan to income ratio, especially whilst the industry continues to adjust to the Mortgage Market Review.”
