Activity in the new homes market has improved significantly since April, following the introduction of the Government’s Help to Buy scheme, with around 4,000 people having reserved a new home using the Equity Loan available as part of Help to Buy scheme in the past two months.
Help to Buy, launched on April 1, allows purchasers to buy a new build home with a deposit of at least a five per cent, supported by an equity loan of up to 20 per cent.
With around 500 people a week, on average, taking advantage of the scheme, there are naturally growing concerns among various property professionals that new housing supply will fail to cater for growing demand.
At around 115,000 new homes per annum, house building levels in England are currently around half those needed to meet the formation of new households at an estimated 220,000. Just 88,000 private for sale homes were built last year.
However, according to the Home Builders Federation (HBF), which provided the data on Help to Buy transactions, the rise in demand for the shared equity loan scheme has already seen developers commit to increasing the supply of much needed new homes.
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Article taken from Proprty Drum. For full article click here.