The number of people making use of the Help to Buy service rose to a record high in June, according to new data, with property worth £1.1 billion being purchased.
There were more than 4,700 equity loans received through the government’s Help to Buy scheme in June, and the level of activity recorded was the highest monthly activity since the launch of Help to Buy in April 2013.
Since the Help to Buy scheme’s introduction, a total of 112,803 mortgages have been arranged through the scheme, with the vast majority being first-time buyers, at 80 per cent.
The average price of houses sold through the scheme is £186,000, well below the national average house price, mainly due to 95 per cent of purchases being outside of London.
The rise in June highlights the increase in housing market activity lately, with house transactions at the highest level for almost eight years.
A total of 56,402 homes have been sold using the equity loan scheme since its introduction. Equity loans are available in England to those buying a newly-built house, up to a price of £600,000.
“The focus now needs to turn towards more permanent solutions that address the underlying problems affecting housing affordability,” said Andy Frankish of the Mortgage Advice Bureau.
“The issue of supply is a growing concern, particularly as new starts have flatlined in recent months while consumer demand rises. A lack of suitable properties will continue to force prices up, so it’s vital that government initiatives begin to tackle this critical imbalance.”