Help to Buy housing scheme off to ‘flying start’

The government’s Help to Buy scheme began in April and according to the industry has got off to a “flying start”. The Home Builders Federation (HBF) has revealed that 4,000 people have reserved a new home in the two months since the scheme launched. House prices in the three months to May were 2.6% higher than in the same period a year ago, which the Halifax said is the fastest rate since September 2010. However, despite the uptake in the scheme the news will add to criticism that the Help to Buy scheme is likely to boost prices artificially, and make homes even more unaffordable. However, the HBF is already hailing part one a success. The Help to Buy scheme allows buyers to put down a deposit of just 5%, and take out an equity loan from the government for up to 20% of the property’s value. A stage two of the Help to Buy Scheme is due to begin in January next year, where the government will guarantee mortgages. The scheme is currently due to run until 2017 however the governor of the Bank of England, Sir Mervyn King, said the scheme should not be extended. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with family law solicitors in Winchester and across the country.