Some 248,075 properties were bought with an equity loan since the Help to Buy scheme launched in April 2013, the government has revealed.
In newly released statistics, the government said the total value of these equity loans topped £14.31 bn, with the value of the properties sold under the scheme totalling £65.69 bn.
The majority of home purchases in the scheme were made by first time buyers, who accounted for 201,784 (81%) of total purchases.
The mean purchase price of a property bought was £264,785, with buyers using a mean equity loan of £57,694.
The government also revealed that 5% of properties bought through the scheme sold for over £500k, while 5% of buyers earned £100k or more.
In London, the maximum equity loan increased from 20% to 40% in February 2016. Between that month and September 2019, there were 17,287 completions in London, of which 15,085 were made with an equity loan higher than 20%.
Founder and CEO of Stone Real Estate, Michael Stone, said that there was “no denying” that the Help to Buy scheme had been “successful” in helping buyers “gain a foot” on the property ladder who otherwise would struggle to do so, adding that the scheme has had a “positive impact”.
He said: “While the scheme does have its critics, and some may say downfalls, with many believing it has actually helped to inflate prices, it’s important to remember a few things in the wider context of the market.”
“A dwindling level of stock across our major cities and London, in particular, is the primary cause of increasing house prices and demand remains robust with or without schemes like Help to Buy.”
He added: “When you also consider that Help to Buy is restricted to new build homes, which often carry a price premium due to the quality of build amongst other factors, the price paid via the scheme is always going to exceed that of the wider first-time buyer market.”
“It may not have been the quick-fix solution to the long term supply issues that we’ve been searching for, but there will be many homeowners across the nation, the majority of which are first-time buyers, who are thankful for the boost it has provided them in getting onto the housing ladder.”