Member Article

Help to Buy helps 3,674 people in the North East become homeowners

The Government’s Help to Buy scheme has reportedly helped almost 3,700 people across the North East buy a new home according to new statistics.

The scheme was introduced to support hard-working people who can afford a mortgage, but struggle to save the deposits required by lenders in the wake of the financial crisis.

In total across the country, more than 66,000 households have been helped by Help to Buy: mortgage guarantee and Equity Loan.

Help to Buy continues to benefit first-time buyers, with the vast majority of sales outside of London and at prices well below the national average.

Durham County Council was the highest performing local authority in the region for the two parts of Help to Buy (Mortgage Guarantee and Equity Loan) with 663 new homes secured by residents, including 117 New Buy.

Together with the government’s NewBuy scheme, which offers 95% mortgages for those buying new-build properties, the number of new home owners across the country has reached more than 71,000.

In Yorkshire and the Humber more than 520 people have taken advantage of the NewBuy scheme.

Figures reveal that 81% of Help to Buy sales are to first-time buyers, helping 54,000 into their first home - showing how although Help to Buy accounts for only for approximately 3% of overall house sales, the scheme is continuing to successfully target the people who need a helping hand to get on the housing ladder.

Home Builders Federation Executive Chairman Stewart Baseley said: “The increased certainty offered by Help to Buy has led directly to a significant increase in investment by house builders in land, the supply chain and labour.

“By unlocking demand and making home ownership affordable for many thousands of young people and families the scheme has provided the impetus for house builders to step up production.

“Building high quality homes also boosts supply chains and cements tens of thousands of jobs and apprenticeships for young people in communities up and down the country.

“Young people considering a career in house building today can be confident that ours is an industry with bold ambition and in need of talented, hardworking and enthusiastic people to build the communities of tomorrow.”

Chancellor George Osborne said: “This government’s long-term economic plan is all about supporting hard-working taxpayers achieve their goals – and for many, their biggest goal is owning their own home.

“That’s why this government created Help to Buy, which has helped over 71,000 people across the country buy their new home, the vast majority of whom are first-time buyers.

“It’s also helping to get Britain building again: housing starts soared by 23% last year, reaching their highest level since the economic crisis. Help to Buy is good for homebuyers, it’s good for the construction industry, and it’s great for the economy.”