Four thousand people reserved a home through the Help to Buy scheme in the two months since it came into effect in April.
The Home Builders Federation is delighted with the response and says the industry will have to significantly increase the output of new homes.
The Help to Buy: equity loan scheme applies to new build properties only. It expands the former First Buy scheme and is now available to everyone, not just those buying their first home.
To qualify you will need a minimum deposit of 5%. The Government will then lend you up to 20% of the value of the property through an equity loan. This can be repaid at any time or on the sale of the home.
It means you could buy a property with just a 75% mortgage from a bank or building society.
This scheme will run for three years, providing £3.5bn of additional investment in housing.
Stewart Baseley, Executive Chairman at the Home Builders Federation, said: “Help to Buy has got off to a flying start. The large deposits required in recent years to secure a mortgage have prevented many from buying – and as a result, builders from building.
“The Equity Loan scheme helps consumers overcome that deposit barrier and as a result the scheme will undoubtedly lead to an increase in house building.”
Please contact us if you would like more information about the legal aspects of buying and selling a home.
Jane Riley | Partner
Head of Property Department, Kerseys