Government housing scheme Help to Buy has enabled almost 100,000 people buy a new home since it was introduced and has now been extended until at least 2020.
The average house price was £184,000 - significantly less than the national average of £273,000 - and 80 per cent of scheme completions have been made by first-time buyers, with more expected when the Help to Buy Isa launches this autumn.
The equity loan and mortgage guarantee schemes were launched in 2013 and together with the NewBuy scheme - which offered 95 per cent mortgages for those buying new-build properties - the number of new home owners has now reached 99,601.
Over half of the homes bought through Help to Buy are new-build properties, helping to contribute to the 41 per cent increase in private house building in England since launch.
Almost all completions have been outside London, the highest number through the mortgage guarantee scheme being in the north west region, while for the equity loan completions have been particularly high in the south east.
The government stated that last year private housing starts in England increased by 8,660 - with annual housing starts at a seven year high and 443,410 new private homes being built in the UK since April 2010.
The Treasury has also confirmed it is providing the Homes and Communities Agency with the 2016 to 2017 allocation of the £6bn, committed to extend Help to Buy to at least 2020.
Chancellor George Osborne said that the schemes were boosting the economy by driving an increase in house building in Britain, ensuring long-term housing supply and creating jobs.
“That’s why I committed £6bn to extend Help to Buy to at least 2020, giving developers certainty so they can plan for future Help to Buy housing schemes and continue to boost housing supply.
“Today I’ve confirmed the first annual allocation of nearly £1.5bn, providing funding for Help to Buy equity loan for 2016/17.”
Stewart Baseley, executive chairman of the Home Builders Federation, added the equity loan has stimulated demand for new homes and led to a sharp rise in private house building.
“Extending the scheme to 2020 provides certainty of demand that allows home builders to recruit the people and invest in the land and supply chains required to support further sustained increases.
“The mortgage guarantee scheme has also benefitted new home building, both directly by increasing demand for new homes, and indirectly by helping new home buyers to build housing chains.”
peter.walker@ft.com
