Affordable housing schemes have helped nearly 80,000 first time buyers get on to the property ladder since 2013. However, the average price paid for properties using these schemes is only 4% lower than the market rate.
In fact the research, published by Halifax, showed that the average price paid for a property under the schemes was £189,786, just £7,750 lower than the £197,535 average for house purchases.
While houses in London cost the highest (£483,579), buyers who are interested in this area are able to benefit from the largest discount. Individuals using a scheme paid 33% less on properties in the capital (£323,148). The lowest price paid by buyers in the UK, using the affordable schemes, was in the north (£147,437).
Craig McKinlay, Mortgages Director at Halifax, commented: “Many of the affordable home ownership schemes available have been designed specifically to help first-time buyers get on the ladder and support construction of new build homes.
“The latest official figures show this has been successful, as Help to Buy and Help to Buy NewBuy schemes have helped close to 80,000 first-time buyers on to the housing ladder since Help to Buy’s introduction in 2013.
“As the economy continues to recover and mortgage interest rates remain at very low levels. We expect to see continued growth in first-time buyers during the second half of the year.”
The research revealed that first time buyers are still the biggest beneficiaries of the government schemes. In total 80% of purchases through Help to Buy in the last 13 months were individuals buying a house for the first time. This percentage is considerably higher than the 46% of all mortgage purchases made by first time buyers over the same period.
Article By: Ratchelle Deary, Marketing Executive at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
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