The average purchase price of a home bought using a Help to Buy equity loan reached nearly £300,000 in Autumn last year, outpacing the rise in UK house prices.
New government figures on uptake of the Help to Buy equity loan scheme show that the mean price of a home bought through the scheme in the third quarter of 2018 was £298,926, up by nearly 6 per cent from £285,495 in the same period of 2017.
Meanwhile, according to Office for National Statistics figures the average house price rose by 3 per cent to £249,408 in the year to September 2018,
The number of homes bought using a Help to Buy equity loan rose by 13 per cent from 44,547 to 50,302 in the year to the end of September, compared to the previous 12 months
Of these purchases, nearly 82 per cent were made by first-time buyers, up slightly from 81 per cent last year.
The latest year’s figures bring the total number of homes bought through the scheme to 195,219 since its launch in April 2013.
The total value of these equity loans was £10.66bn, with the value of the properties sold under the scheme reaching a total of £49.89bn.
In London, the maximum equity loan was increased from 20 per cent to 40 cent from February 2016, and since then to 30 September 2018, there were 10,829 completions in London, of which 9,091 were made with an equity loan higher than 20 per cent.
Intermediary Mortgage Lenders Association executive director Kate Davies says: “These statistics show that Help to Buy has become a cornerstone of the UK property market.
“The government’s programme continues to stimulate the bottom of the housing ladder, providing essential support to the whole of the UK property sector.”
She adds: “These figures show a continuing trend in what looks set to be the strongest year so far for HTB sales, with total completions since the scheme began likely to have passed the 200,000 mark by the end of 2018, with around 1,000 sales a week completing with the support of HTB in 2018.”