Help to Buy attracts renters
According to research from Countrywide’s market review, aspiring homeowners who were previously renting accounted for 55% of sales under the scheme which group financial services director Nigel Stockton said proved it was reaching those who needed it most.
“Given that the scheme is funded by the government it is important that those using it would otherwise find it difficult to buy without assistance. “This has almost exclusively been the case with the majority of purchasers coming from the private rented sector or the parental home.”
Data from Countrywide revealed that the income of the average Help to Buy purchaser moving from privately rented accommodation was £41,000, while a third (35%) of households renting earned less than £30,000. In London and the South East 40% of renters using the scheme to buy their first home earned under £30,000.
“The Help to Buy scheme is enabling a growing number of households to achieve their aspiration of homeownership at a time when the proportion of high loan-to-value mortgages is historically low.
“As homeownership rates decline, particularly amongst younger age groups, Help to Buy increasingly represents the way many new households are able to get onto the housing ladder.”