Annual ‘Help to Buy Barometer’ unveiled by Linden Homes
Despite Help to Buy being available to all types of homebuyers, the uptake has been, and remains to be, largely by first time buyers. However, Linden Homes has noticed a shift in this trend with almost a third (32%) of homes sold to existing home owners who are now increasingly taking advantage of the equity loan scheme.
At the new Linden Homes development in Horsham, Oaklands almost 75% of people using the Help to Buy scheme at the development are First Time Buyers, taking full advantage of the Government incentive to take their first steps onto the property ladder. Second steppers using the scheme have been steadily increasing over the past year with over 25% recorded as using Help To Buy since the development launched.
The latest national data from the DCLG revealed that in the last 42 months (up to 30 Sept 2016) 100,284 properties were bought with Help to Buy. Of this, the majority of sales were first time buyers, totalling 80,811, representing 81% of the total sales.
Phil Chapman, Managing Director, Linden Homes South: “We are pleased to see that first time buyers are continuing to utilise the Help to Buy scheme in order to get on to the property ladder. However, to see such strong growth among existing homeowners is really encouraging – it demonstrates that the Help to Buy equity loan scheme is not only for first time buyers, but is now increasingly enabling families to take the step up the ladder to ensure they have a home fit for the future. Families utilising the Help to Buy scheme are now able to take their next steps on the property ladder, permitting them to buy a larger house to accommodate a growing family – a home that they may not otherwise have been able to afford.
“Low mortgage rates, increasing employment statistics and more accessible, local new home developments have made it possible for wider audience groups to purchase their dream home.”
First time buyers continue to benefit most from access to the scheme, due to run through to 2021. According to the latest Halifax First-Time Buyer Review, the number of first-time buyers is estimated to have reached 335,750 in 2016 up by 7.3% compared with 2015 and the highest level since the start of the financial crisis in 2007.
Situated in the popular market town of Horsham, Oaklands has a selection of homes available with Help to Buy available on homes under to £600,000, buyers with deposits as low as five per cent can take advantage of the scheme. The deposit combines with a government loan of 20 per cent (interest free for five years) to leave buyers requiring a more attainable mortgage of 75 per cent.
The development is only 31 miles from London; those who commute to the capital will particularly appreciate its position, less than a mile from the railway station and direct links into London by road.
Phil Chapman, continued: “Supporting first time buyers as they take their step on the property ladder is very important to us. 68% of our Help to Buy purchasers are first time buyers, allowing us to make the dream of owning a home a reality for so many people. The uptake in existing homeowners and families using Help to Buy means that we are able to assist those from all walks of life – individuals, couples and families – in finding their dream home. This is, and continues to be, a real driver for our business.
“The growing trend of existing homeowners using Help to Buy is intriguing and one that we will continue to monitor against national data. We believe that getting the blend of house types on our developments right in parallel to our reputation for quality and neighbourhood development are contributing factors to these findings.
“Over the course of 2016 we witnessed growth in the use of Help to Buy, in Q1 (Jan-Mar) just 28% of our buyers accessed the scheme, peaking at 41% in Q3 (July-Sept). It will be interesting to see whether the uptake of Help to Buy will continue to increase across 2017 and what future trends we will see emerge.”
To see how much you can afford with the scheme check out Linden Homes’ Help to Buy calculator at lindenhomes.co.uk/helptobuy where you can also view applicable developments near you.
For more information, visit our sales and marketing suite open Monday – Sunday from 10am – 5pm or call us on 01403 858674 or 01403 858674.
Media can contact Alice Cannell or Fotini Efstathiou on 01962 893 893 for more information, images and interviews with Linden Homes.
06 March 2017