The fairly new government scheme known as Help to Buy has benefitted many potential house buyers this calendar year, and the year is not over.  It had major impact on the UK housing market last year, but has had residual effects lasting into this year.  The Help to Buy scheme assists those who are having trouble coming up with the required amount of a down payment on a new home.  It has spurned growth within the housing market and made it possible for the overall economy to benefit from its positive influence on housing.

The Help to Buy scheme has now affected the amount of construction which took place during the first part of the year, according to recent Treasury figures.  In the three months to June, the purchase of more than 10,500 homes has taken place.  This is a considerable increase over the previous three months in which only a little more than 6,000 homes were purchased.

The value of almost half of all home purchases was under £125,000 each.  Right at 80% of all purchasers of the homes were first time buyers.  Buyers were concentrated in the Scotland area, as well Wales and the northwest and east of England.

The Help to Buy scheme is a favourite of chancellor George Osborne.  He commented on the scheme, saying: “Help to Buy is also driving a big increase in housebuilding in Britain, boosting the construction industry and increasing housing supply.”

Simon Crone with Genworth commented on the house construction, saying: “It must now become a platform to a permanent market-driven solution that sustains this progress and can support first-time buyer access while maintaining financial stability.”

Crone added: “A permanent heir for Help to Buy remains the missing piece of the UK’s regulatory jigsaw.”