Figures released from the Treasury have revealed the second phase of the Governments Help to Buy scheme have provided a lifeline to first-time buyers in the North West.
The scheme allows purchasers to buy a new-build or existing home priced up to £600,000 with as little as a 5% deposit, by way of a Government guarantee.
There have been 7,313 Help to Buy mortgages in total completed in the first six months of the schemes launch in October 2013, the majority of which have been to first-time buyers, providing a much needed helping to hand to those looking to get onto the property ladder.
Of the Help to Buy second phase transactions 80% were purchased by first-time buyers and more notably the majority of buyers were from outside the capital, alleviating concerns that Help to Buy could be fueling the fast price rises in London. Only 5% of purchases were in London.
The scheme has had a much greater impact in the North of the Country with 14% of buyers in the North West and 9% from Yorkshire.
Reports reveal a typical Help to Buy consumer is aged early 30’s, a newcomer to the housing market, likely to be planning to buy a semi-detached or terrace house, worth less than £125,000 in the North West or the South East – but outside London, with a household income of between £30,001 and £40,000.
“Almost half of all mortgage completions through the scheme are on properties worth £125,000 or less, with just over 7% of mortgage completions being made on properties valued at £250,000 and above,” the Treasury said.
Ryder and Dutton have seen a high level of interest in the Help to Buy scheme from purchasers, particularly as the local areas offer a wide selection of properties ideally suited to the scheme particularly semi-detached and terraced houses available under £125,000.