More than 2,000 people in Lancashire have been helped through the Government’s housing scheme, Help to Buy.
Figures show that, since the scheme was created, 2,385 people across the county have received support on to the housing ladder.
Help to Buy was created in 2013 to support hard-working taxpayers who could pay a mortgage, but couldn’t afford the high deposits demanded by lenders in the wake of the financial crisis.
Together with the government’s Help to Buy: NewBuy scheme – which offers 95 per cent mortgages for those buying new-build properties, the number of new home owners has reached almost ninety thousand.
The scheme also continues to benefit first-time buyers overwhelmingly, with the vast majority of sales outside of London and at prices well below the national average.
Help to Buy is also ensuring the long-term health of the housing market by increasing housing supply, stimulating home building.
Over half of the homes bought through Help to Buy are new-build properties, helping to contribute to the 37 per cent rise in private house building since the launch of Help to Buy.
Help to Buy was designed to support responsible lending, and the Bank of England made it clear in October that the scheme is “not a material driver of house price growth”.
This is demonstrated by today’s figures: the average house price for both parts of the scheme, at £185,000 (£156,000 for the mortgage guarantee and £212,000 for the equity loan scheme), remains significantly below the national average house price of £272,000.
The average house price to income multiple under the mortgage guarantee scheme is just over 3.5x salary, and capped at a 4.5x ratio to ensure responsible lending.
Home Builders Federation Executive Chairman Stewart Baseley said: “Help to Buy has helped tens of thousands of people onto the housing ladder who otherwise would have struggled to meet their ambition of home ownership.
“First time buyers, in particular, are taking advantage and the scheme is helping people in every part of the country.”