By Daniel Hunter
Home arrangements made under the Help to Buy housing scheme topped 12,500 by the end of August, placing it on track to meet the government’s target of delivering 74,000 homes by 2016.
The Help to Buy scheme is designed to help would-be homeowners take their first or next step on the property ladder by laying down a 5% deposit on a home, with the government offering an equity loan of up to 20% of the property’s value.
The success of the scheme has been lauded by British builders as represented by the House Builders Federation. The trade body expects take-up of the plan to increase as the residential property industry enters the traditionally busy autumn season.
“Help to Buy has been an unqualified success,” said Stewart Baseley, executive chairman of the House Builders Federation.
“It is addressing a lack of mortgage availability- the main constraint on the market, and if people can buy, builders can build. With the traditionally busy autumn house buying period upon us, all the signs are that the next couple of months will see a significant number of people realising their ambition of home ownership.”
The government welcomed the news, hinting that it is a clear sign that the property market is on the road to recovery.
"The housing market has turned a corner since the end of the unsustainable housing boom,” said Mark Prisk MP, the housing minister.
“There are more first time buyers than at any time since 2007, while housing supply is at its highest level since 2008 and growing at the fastest rate for three years.”
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