View more on these topics

Help to Buy reservations pass 12,500 mark

The Home Builders Federation believes the first part of Help to Buy is on track to meet its three-target on reservations.


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 reservations over the scheme’s three year term.

Major housebuilders told housing minister Mark Prisk at a meeting last week the first part of Help to Buy was on track to hit its three-year target.

Under the first part of Help to Buy, applicable to new homes worth up to £600,000, buyers put down a 5 per cent deposit and receive a 20 per cent Government equity loan, which is interest-free for five years.

The second element of Help to Buy, set to launch in January, is a £130bn mortgage indemnity scheme for new and existing homes.

Home Builders Federation executive chairman Stewart Baseley says: “Help to Buy has been an unqualified success. 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.”

Chadney Bulgin mortgage partner Jonathan Clark says: “Help to Buy is obviously fuelling demand for new build but I worry about the artificial spike in house prices that is being created. A target of 74,000 reservations is barely scratching the surface in terms of the number of new homes the UK actually needs.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm