While the Help to Buy Isa launches in December, the chancellor has confirmed the wider mortgage scheme will end next year.
George Osborne stated that the stronger economy and financial system means the government expects banks to start exiting the Help to Buy Mortgage scheme, which was introduced in times of financial distress.
“The Help to Buy shared equity scheme goes from strength to strength and our new Help to Buy Isa we’re launching in December will provide generous support to those saving for their first home by providing a government boost on their deposit.”
His comments came as the government reported half of the homes bought through Help to Buy are new-build properties, helping to contribute to the 36 per cent rise in private house building since the launch of Help to Buy in 2013.
The scheme has helped 90,000 households buy their first home - 80 per cent of the overall Help to Buy buyers.
It has also accounted for 3 per cent of the mortgage market for both the mortgage guarantee and equity loan scheme.
With almost all completions outside London, the highest number of homes have been through the mortgage guarantee scheme in the north west region. The equity loan – a scheme for new build properties – is particularly high in the south east region.
Figures for the mortgage guarantee scheme also show completions have been least concentrated in regions where house price growth is highest.
In London the scheme makes up just 1 per cent of all mortgage lending compared to an average of 3 per cent across the country.
The average house price for both parts of the scheme is £186,000 (£155,000 for the mortgage guarantee and £216,000 for the equity loan scheme).
The average house price to income multiple under the mortgage guarantee scheme is just over 3.5 times salary, and capped at a 4.5 times ratio.