In the Government’s final update for the now closed scheme it revealed that 387,195 homes were bought using the scheme between its launch on 1 April 2013 and closure on 31 May this year, 82% of which went to first-time buyers.
The total value of properties bought was £109.2bn.
December 2020 was the most successful month for completions over the 10-year period as homebuyers scrambled to buy properties during the stamp duty holiday when the land tax was scrapped for homes with a price tag of less than £500,000.
Close to 80% of all properties bought using a Help to Buy home were houses. In London, however, buyers predominately purchased flats.
Help to Buy: The background
The Help to Buy Equity Loan schemed offered first-time buyers the chance to purchase a new-build property with a minimum 5% deposit. They could also use an equity loan of up to 20% of the purchase price – or 40% in London – where the loan is interest-free for the first five years.
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It closed to new applicants on 31 October 2022, and while all transactions were to be completed by 31 March 2023, housebuilders were able to apply for a two-month extension for homes that were almost complete, allowing 106 more households to benefit from the government-backed loan.
Under the original scheme’s rules, any borrower was eligible for a Help to Buy loan. In 2021, eligibility criteria changed and only first-time buyers could apply.
Borrowers could borrow up to 20% of the property purchase price in the form of an equity loan (405 in London) which was interest-free for the first years. The loan is repaid when the house is sold.