Help to Buy boosts UK housing sector
The UK property sector has received a considerable boost so far this year following the launch of the government's Help to Buy scheme, new official statistics have revealed.
According to the latest publication of data from the Department for Communities and Local Government, almost 7,000 Brits have signed up to receive up to 20 per cent reductions in the level of equity they require when purchasing new-build homes.
The scheme enables individuals to receive interest-free loans of up to five years for up to 20 per cent of the equity in properties valued at up to £600,000, meaning those struggling to get a foot on the UK property ladder are receiving a significant leg up from the initiative.
For example, individuals wishing to purchase a home of £200,000 under the scheme would only need to raise a deposit of £10,000 (five per cent), with the government funding a further £40,000 (20 per cent) and the remainder of the costs - £150,000 (75 per cent) - made up through a mortgage.
Housing minister Mark Prisk said: "With almost 7,000 reservations in three months, it's crystal clear that the Help to Buy equity loan has captured the public's imagination and is getting Britain building again, which will help achieve a long-term, stable housing market."
Furthermore, the upcoming rollout of the Help to Buy Equity Loan Guarantee aims to help upwards of 74,000 people to purchase a home when it officially gets underway in the coming months.
According to the DCLG, the scheme is helping to remove a bottleneck in the UK property sector for individuals who want to move home but who cannot afford to do so in the present market.
Indeed, the positive start the project has received to date highlights the massive "pent-up demand" that exists within the UK property sector and the "huge appetite for homeownership" from the general public.
"Any credit-worthy buyer ... should contact their local Help to Buy agent and see if they could benefit from the scheme," Mr Prisk added.
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