UK Help to Buy Funded 4,300 Homes in June

More than 4,000 households in England used the government’s Help to Buy loan scheme to buy properties in June, the highest monthly total since the scheme began in 2013.

The latest government data indicated more than 4,300 completions during the month, with more than 27,100 homes bought using the scheme. The figures refer to the first phase of Help to Buy, which offers buyers an interest-free loan worth up to 20% of the price of a new-build home.

Data from the Department for Communities and Local Government showed that £1.1bn of loans had been offered, supporting purchases worth £5.65bn. More than two-thirds of buyers took the chance to take out a 95% mortgage, with the rest putting down larger deposits.

Nearly a third of sales were in the £150,001 to £200,000 price bracket, while a quarter involved homes costing less. A fifth were in the £200,001 and £250,000 bracket. The median value of properties bought through the scheme was £187,000.

Loans are available on properties costing up to £600,000 and there is no upper limit on applicants’ incomes. The figures indicated that Help to Buy is not a major contributor to Britain’s galloping house market. Fewer than 250 households, or 0.9% of the Help to Buy total, had used the scheme to buy properties costing more than £500,000 while 3% of the total had household incomes in excess of £100,000 a year. More than eight out of 10 purchases were made by first-time buyers.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza