Comment on DCLG Help to Buy stats for June 2016
Wed 29 Jun 2016
Charles Holland, Head of Residential Investment at Marsh & Parsons, comments:
"After peaking in the final quarter of 2015 after further encouragement from the government, the number of Help to Buy completions tailed off in the first three months of this year. This brings the total number of properties purchased using the equity loan scheme above 80,000 which is a not insignificant amount, but its worth bearing in mind that fewer than 5,000 of these transactions have occurred in the capital. Given the continual draw of London as an employment and lifestyle hub, this is obviously problematic.
"Since the start of February, Help to Buy applicants within Greater London have been able to claim an equity loan of up to 40% of the purchase price of a property, but just 256 buyers made use of this by the end of the first quarter. This shows that while the scheme is helping some people take the first step on the property ladder, it is still a drop in the ocean of what is required to truly get young Londoners moving. Such initiatives are welcome, but until the fundamental issue of the housing supply shortage is fully addressed, this will remain an issue."