Mortgages: Government Assistance

Treasury written question – answered on 27th March 2014.

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Photo of John Healey John Healey Labour, Wentworth and Dearne

To ask the Chancellor of the Exchequer what value of loans have been issued under the Help to Buy equity loan scheme; how many loans have been issued to date; and what proportion of recipients are first-time buyers in each (a) region and (b) local authority area.

Photo of Kris Hopkins Kris Hopkins The Parliamentary Under-Secretary of State for Communities and Local Government

I have been asked to reply on behalf of the Department for Communities and Local Government.

This Government are committed to supporting people's aspirations to own their own home.

In the first 11 months of the scheme, 16,465 households purchased a new build home with the support of the Help to Buy equity loan scheme.

By January 2014, the time of the last quarterly statistical release, first time buyers accounted for 89% of sales. The total value of these equity loans was £600 million.

A local authority breakdown in transaction level data with a breakdown of the value of equity loans are available as Official Statistics at:

www.gov.uk/government/publications/help-to-buy-equity-loan-scheme-and-newbuy-statistics-april-2013-to-january-2014

My Department does not publish statistics at a former Government office regional level, as outlined in the written statement of 18 December 2012, Hansard, columns 31-33WS.

An additional table, with a breakdown of first-time buyers in each local authority has been created and will be deposited in the Library of the House.

We have taken a conscious policy decision to make the Help to Buy equity loan scheme accessible to those other than first-time buyers: this is since we want to help “second steppers” move on and up the housing ladder, and since the scheme directly supports new build housing and helps boost housing supply and construction.

Notwithstanding, individuals cannot rent out their existing property to buy a second home through the scheme, nor can the Help to Buy home be sub-let.

The average price of a property bought under the scheme was £184,000, reflecting the fact that the scheme is supporting abroad spectrum of hard-working people.

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