Around 4,000 people have reserved new homes through the Government’s Help to Buy scheme in the past two months, research suggests.
Figures published by the Home Builders Federation suggest take up of the Help to Buy Equity loan scheme has exceeded expectations, after the programme was launched on 1 April.
Under the Equity Loan scheme, buyers of new build homes can secure mortgages with at least a 5% deposit while the Government will grant an equity loan of up to 20%.
With on average 500 people per week taking advantage of the scheme, the Home Builders Federation has said it is confident housing suppliers will now act to increase output.
The second part of Help to Buy, a Mortgage Guarantee element, is set to be launched in January, and will work to stimulate the whole housing market.
Executive chairman at the Home Builders Federation, Stewart Baseley, said: ‘The Equity Loan part of Help to Buy has got off to a flying start. It has been an unqualified success so far and 4000 reservations in just two months shows both the consumer demand for the scheme and developers’ commitment to it.
‘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.’