Help to Buy:158 homes sold in Exeter and E. Devon

158 newly-built homes in Exeter and East Devon have been bought using equity loans from the government’s ‘Help to Buy’ scheme according to new figures released today.

The 'Help to Buy' equity loan scheme, which was launched in April last year, enables people to buy a newly-built home with a deposit of at least 5% of the property price, while the government offers a loan of up to 20%. The shortfall is then covered by a mortgage.

Across the South West over 1,700 homes have been bought using the equity loan scheme with 28,000 across the whole of England..

Housing Minister Kris Hopkins has welcomed the latest figure, he said: “Help to Buy was introduced for the benefit of the whole country, because this government is determined to ensure that anyone who works hard and wants to buy their own home should have the chance to do so.

“So I’m really pleased to see how people across the South West are voting with their feet and using the Help to Buy: Equity Loan to get a foothold on the property ladder.

“The scheme has proved itself a valuable alternative to the bank of Mum and Dad, and since each home sold is new-build, the Equity Loan is also getting the South West building again and creating exciting and rewarding career opportunities for local people.”

The equity loan scheme is the second part of the government’s ‘help to buy scheme and joins the mortgage guarantee scheme, which began across the UK last October and will run until the end of 2016,
The mortgage guarantee offers a government guarantee against losses for lenders who are prepared to offer mortgages to people with only a small deposit.

Speaking earlier this month Mr Cameron hailed the scheme, saying: "Help to Buy is a key part of our long-term economic plan, giving thousands more people the security and independence that comes from owning their own home."

However Labour opposition have said more needs to be done to balance ethe market with more affordable housing through a "help to build".

In the move which Labour argue would reduce the cost of living crisis, the opposition has committed to getting at least 200,000 homes built a year by 2020 if elected next year.

Responding to figures earlier this month Labour’s shadow housing minister, Emma Reynolds said: "Any help for first time buyers struggling to get on the property ladder is to be welcomed,"

"But rising demand for housing must be matched with rising supply if this scheme is to bring the cost of housing within the reach of low and middle-income earners.

"Instead, under this government house building fell to its lowest level in peacetime since the 1920s and home ownership continues to fall.

"You can't deal with the cost-of-living crisis without building more homes."