Government-backed housing schemes have created 25,000 new home owners to date – with more in the pipeline. So far, builders have been by far and away the greatest beneficiaries. A total of 3,749 people have bought new-build homes through the NewBuy scheme since its launch in March 2012. NewBuy allows purchasers with only a 5% deposit access to 95% mortgages, where the lenders are indemnified against losses should the property be repossessed.
On top of NewBuy has been the first phase of Help to Buy, which was launched in April this year and had over 3,000 sales plus 10,000 reservations in its first four months. Like NewBuy, the first phase of Help to Buy is available only on new homes, but is a shared equity scheme, again allowing access to 95% mortgages. A further 10,633 people used the former FirstBuy scheme, which preceded Help to Buy and was a shared equity scheme available on new-builds only. On top of these figures, more than 8,000 former council tenants have used the re-launched Right to Buy scheme to get into home ownership.
The existing schemes will sit alongside the second phase of Help to Buy, set to launch in January. This will be a mortgage indemnity scheme, allowing access to 95% mortgages for both new and existing stock, and most analysts believe that it is this second phase which will have the most impact. Housing minister Mark Prisk said: 'The housing market is clearly moving again, with nearly 26,000 hard-working people helped to achieve their dreams of home ownership through the range of government-backed schemes on offer.'
He said of the second phase of Help to Buy: 'I expect to see even more people benefit from the support we’re making available.'