The Help to Buy scheme, which is set to end in the year 2021, has helped thousands of people afford housing which otherwise could not. The government programme will end in a few years and talk of replacing it with something is already taking place. Many brand new builds were a product of the scheme according to newly released figures. Some home construction firms have seen a significant percentage of new homes financed by the Help to Buy scheme.

Research released by the Intermediary Mortgage Lenders Association indicates almost 30% of new housing completions were funded by Help to Buy loans between April 2013 and March of 2017. Thousands of new home buyers are now living in these homes due to the assistance the Help to Buy scheme provided. A possible replacement scheme is a high priority of the government as the housing crisis has been aided by the programme.

Ten of the largest homebuilders across the country actually reported up to 40% of their total volume of builds were due to the Help to Buy scheme.

Peter Williams of the IMLA commented on the current state of new build loans, saying:  “Aside from the impact of any decisions on the future of Help to Buy, lender sentiment towards new homes is influenced by the new-build premium, builder incentives and ongoing concerns about the UK housing supply model, which for a variety of reasons has consistently failed to deliver an adequate number of homes to meet demand.”

Williams added: “Lenders will always see new build as different and, indeed, potentially riskier, but significant progress has been made in the last 10 years to put lending activity on a surer footing.”