Reservations under the Government’s Help to Buy scheme have hit 12,500, with major house builders confident the scheme will deliver its target of 74,000 reservations over the next few years.
The Home Builders Federation reports that 12,500 reservations were made through Help to Buy up to the end of August. The Government is targeting 74,000 over the scheme’s three year term.
Housing minister Mark Prisk met with the major housebuilders last week to be told the equity loan version of Help to Buy was on track to hit 74,000 reservations over the next few years.
The builders also discussed what steps could be taken to address the other constraints on supply – the planning system and regulatory costs.
Home Builders Federation executive chairman Stewart Baseley says if Help to Buy is to lead to a significant and sustained increase in housing supply then these two areas need to be addressed.
He says: “Help to Buy has been an unqualified success. It is addressing a lack of mortgage availability, the main constraint on the market, and if people can buy, builders can build. However if it is to ultimately lead to a significant and sustained increase in housing supply, ministers still need to act on the other constraints on supply – a lack of land and excessive regulatory costs.”