A study* by Linden Homes which surveyed 4,000 people across the UK has revealed that despite being available for two years, the majority of the UK still does not understand the Government’s Help to Buy scheme. The study conducted by award winning housebuilder, Linden Homes asked 2,000 current homeowners and 2,000 first-time buyers for their thoughts on the scheme.
The research found that 60 per cent of homeowners believed they did not qualify for the scheme, whilst 61 per cent of first-time buyers believed the scheme is only available to first-time buyers. A further 12 per cent of first-time buyers stated that they did not understand the scheme.
Help to Buy, which was launched back in April 2013, applies to a range of potential purchasers including first-time and next-time buyers on properties up to the value of £600,000. Buyers are required to provide just a 5 per cent deposit to then borrow a further 20 per cent from the Government in the form of an equity loan. Buyers then only need a 75 per cent mortgage agreed by their bank or building society to secure their home.
Although not exclusive to first-time buyers, the scheme has provided a welcome boost to those looking to secure their first home, helping a large pool of purchasers at Linden Homes’ developments across Hampshire.
A word from some first-time buyers who have used the scheme:
When Hayley Clark and Henry Jones were buying their one bedroom flat at Linden Homes’ Totton development, The Mallards, they decided to use the Help to Buy scheme. Hayley says that in practice, the scheme proved to be very easy: “We were both living at our parents’ homes and were planning to buy a place of our own eventually. When the Help to Buy scheme was launched we realised that this was our chance to buy somewhere. We looked at an apartment at the Linden Homes development and decided that the scheme was such a good deal that we would go ahead.”
The couple also spoke to their solicitor and the finance was put in place. The whole process happened very quickly: “We started looking at the apartment in April and within a month we had moved into The Mallards. We are both quite young – I am 23 and Henry is 21 – so we didn’t think we could afford our own home yet and everyone knows how difficult it can be to find the deposit for a first home. But the Help to Buy scheme meant that it was possible for us. If it hadn’t been for this scheme we would both still be living with our parents. My advice to someone in the same position is ‘Go for it’: It’s very simple: There aren’t lots of forms to fill in and it was genuinely hassle free, which is what you want when you are buying a home.”
Callum Kelly, 30 and his fiancée Chloë Ferrier, 29 used the Help to Buy scheme at Linden Homes’ development, The Old Brewery in Horndean, Hampshire. The first-time buyers purchased a two-bedroom house complete with garden and parking. Callum explained: “I was aware of the Help to Buy scheme and after some research we realised the 20% loan was a massive helping hand for us. The fact we only needed to find the 5% deposit was a huge draw for us, especially as first-time buyers; it meant we effectively had £50,000 more than we’d have been otherwise able to afford, which really opened up our options.”
Help to Buy is available at a number of Linden Homes’ developments including:
The Old Brewery in Horndean
St Michael’s Place in Waterlooville
The Landons in Clanfield
Hawthorn Mews in Bedhampton
Scholars Grange in Swanmore
The Old Orchard in Charlton Marshall
Visit http://www.lindenhomes.co.uk/offers-incentives/help-to-buy/ for more information on Help to Buy.
* Study conducted by OnePoll in February 2015 surveyed 2,000 first-time buyers and 2,000 homeowners.
Media can contact Emma Cox or Fotini Efstathiou at Remarkable Content on 01962 893893 for more information, images and interviews with Linden Homes.
24 June 2015