The Government’s Help to Buy scheme is exceeding early targets after 4,000 new homes have been sold since its launch two months ago.
The Financial Times reports figures released by the Home Builders Federation show the scheme has significantly increased the sale of new build homes, after it was announced in the 2013 Budget.
Through Help to Buy, the Government lends buyers up to 20 per cent of the value of a new-build home priced below £600,000, interest-free for a five-year period.
HBF figures show there have been 4,000 registrations for the scheme, amounting to around 500 per week since launch.
It adds that 95 per cent of registrations have seen money changed hands.
Home Builders Foundation executive chairman Stewart Baseley told the FT: “The equity loan scheme helps consumers overcome the deposit barrier and as a result the scheme will undoubtedly lead to an increase in house building – already we are seeing companies revise their projected build levels as a direct result of the scheme. This in turn will create jobs and deliver an economic boost.”
The Government plans to use Help to Buy to fund 74,000 sales in three years.