New research indicates that the average price paid for homes by buyers using affordable housing schemes in the UK has reached nearly £190,000.
A report from the Halifax indicates the total average price of £189,786 is just 4% less than the £197,535 average total for house purchases as a whole.[1]
Regional rates
By region, the highest average price paid by buyers utilising affordable housing schemes was unsurprisingly in London, at £323,148 with the lowest being in the North of England, totalling £147,437. However, the average value of a London home sold via a scheme was found to be 33% lower than the average price of £482,579.[1]
First time buyers were found to be the biggest benefiters of the Help to Buy scheme, which accounted for 80% of sales over the previous year. This was in comparison to 46% of all mortgage financed home purchases made by first time buyers over the same period. What’s more, improving economic conditions and better market certainty has led to the largest number of first time buyer home purchases for seven years.[1]
First time buyers
The latest official data shows that Help to Buy equity loans and mortgage guarantee initiatives have assisted 99,601 buyers to purchase homes since the introduction of Help to Buy in 2013. First time buyers completed 79,680 of these sales.[1]
On average, the price paid by first time buyers using the scheme was found to be £150,361, 10% lower than the average price paid by first time buyers for all housing, which totals £167,093. In London, first time buyers benefit hugely from the scheme, paying on average a price 36% lower than the average value paid by first time buyers that are not using any of these initiatives.[1]
‘Many of the affordable home ownership schemes available have been designed specifically to help first time buyers get on the ladder and support construction of new build homes and the latest official figures show this has been successful, ‘observed Craig McKinlay, mortgages director at the Halifax.[1]
‘As the economy continues to recover and mortgage interest rates remain at very low levels, we expect to see continued growth in first time buyers during the second half of the year,’ he added.[1]
[1] http://www.propertywire.com/news/europe/uk-affordable-homes-research-2015072710791.html