Propertymark research showed that more than 300,000 properties were bought under the scheme, most of which were first-time buyers, which we know is crucial to keep the market moving.
The Help to Buy scheme has had its critics though, with concerns that developers have increased prices to capitalise on those receiving the discount and buyers being limited to purchasing just new builds, leading to questions as to whether these are the reasons to why it has not been renewed.
The more money a buyer borrows to purchase their home, the higher the rate of interest they will pay.
Despite the UK government’s levelling up goal that “by 2030, renters will have a secure path to ownership with the number of first-time buyers increasing in all areas”, home ownership is becoming an increasingly distant goal for many young people.
And without help from the UK government, some are forced to continue to turn to the bank of mum and dad, who in some cases no longer have the funds to support their children.
The scheme, which ran initially from 2013 to 2021 and then an amended version from 2021 to 2023, allowed purchases of a new build home with a loan of up to 20 per cent of the value of a property (40 per cent in London).
This was a huge helping hand of nearly a quarter of a million pounds for home-buyers in London, especially when considering that the majority of people using the scheme were under 35.
What other options are there?
There are still options for people looking to purchase their first home, but unfortunately these do not offer the same freedoms as the Help to Buy scheme.
The government’s Mortgage Guarantee scheme aims to help first-time buyers and homeowners looking to move the opportunity to move with a lower deposit.
The government offers security to banks for 95 per cent mortgages with a buyer’s 5 per cent deposit and was introduced in an attempt to encourage banks to start offering 95 per cent mortgages again after nearly all were withdrawn during the pandemic.
However, generally speaking, the more money a buyer borrows to purchase their home, the higher the rate of interest they will pay, so given current interest rate rises, this may not be a preferable choice for some that wish to move.
Home ownership is becoming an increasingly distant goal for many young people.
