Latest Help To Buy Scheme Could Benefit 55% Of All New-Build Homebuyers
UK Government's Help To Buy Scheme Could Help New-Build Homebuyers
The latest research from snagging and defect management app, BuildScan, has revealed that the latest Government Help to Buy (H2B) scheme could help over a half of all new-build homebuyers to get a foot on the ladder.
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BuildScan first looked at the Help to Buy equity loan price cap in each region of England and Wales, which is essentially the most expensive property to qualify for the scheme.
BuildScan then looked at the number of new-build homes sold in each region during 2020 and what percentage of these fell below their respective regional equity price caps to estimate how many homebuyers could be due to benefit yearly come April.
The figures show that across England and Wales, 32,158 new-build home sales completed in 2020, accounting for around 7% of all residential transactions.
Of these, 17,724 would have fallen below the soon to be implemented H2B equity loan price caps for their region.
H2B Scheme Qualification
As a result, a notable 55% of all new-build specific sales in England and Wales would have, and could, qualify for the latest H2B scheme, providing a significant boost to otherwise beleaguered homebuyers.
The East of England could see the most new-build buyers benefit from the new Help to Buy scheme, with 69% of all new-build transactions seen during 2020 coming in below the £407,400 equity loan price cap.
The South West and South East saw 64% of all new-build homes sold in 2020 fall within their respective H2B loan price caps of £349,000 and £437,600.
London’s new-build homebuyers could also be about to enjoy some of the most significant H2B benefits, with 63% of all new-build transactions in 2020 selling below the £600,000 price cap of the new scheme.
The North East is the region that could see the least benefit. However, 35% of all new-builds sold in 2020 still fell within the new £186,100 Help to Buy price cap, meaning the scheme could benefit a good number of homebuyers when it launches in April.
Giving Credit Where It Is Due
Founder and Managing Director of BuildScan, Harry Yates, commented:
“We’ve seen several Help to Buy schemes implemented by the Government now, and while they have their critics, you have to give credit where it’s due in terms of the sheer number of people it has helped onto the ladder.
Based on previous market data, it certainly seems as though this latest version will do the same, with more than half of new-build homebuyers due to fall within their respective regional equity loan price caps. When you consider the additional saving on offer due to the current stamp duty holiday, it’s arguably never been a better time to get a foot on the ladder.
Of course, with so many homebuyers looking to buy a limited level of stock, an increase in property values is bound to follow. So those considering a purchase are well advised to act sooner rather than later.”
- Founder of HouseScan and BuildScan, Harry Yates, comes from a family background of construction and also holds a Construction Management degree.
- Having done the basics of the job for a number of years, Harry launched HouseScan four years ago, then started introducing his bespoke technology in 2020 to fulfil the snagging process properly.
- HouseScan is the new-build snagging experts, using their knowledge, expertise and equipment to ensure your new home is as it was promised.
- HouseScan has been employed by thousands of customers buying new-build homes from a wide range of different housebuilders.
- The HouseScan inspection and report is not only award-winning but more comprehensive than any of their competitors. HouseScan keeps up to date with all industry changes and regulations and they are also equipped with a range of equipment totalling over £4000 each.
- BuildScan is a multi-platform app that allows users to manage defects, snag lists, punch lists, surveys and project workflow in full synchronisation and with unlimited collaboration. Teams or individual users can manage entire projects through BuildScan, assigning and controlling tasks, workflow and much more for effective construction defect management.
- With BuildScan you can break your projects down into sites, plots and build stages for easy project management, log unlimited snags & defects straight into the BuildScan app, assign these defects as tasks to individuals & contractors within your team, manage and track progress throughout all stages of your project, create, manage & export snagging & inspection reports directly from the app
- BuildScan launched on the 3rd November 2020.