Figures from housebuilder, Bloor Homes, have revealed that home purchases using Help to Buy have surged across the region in the last five months, with over 50% of buyers at its developments taking advantage of the scheme.

With the average rent of a newly let property in Britain up 2.3% in August on the same time last year[1] – and up 5.5% in the south west to an average of £852[2] – many people are looking at Help to Buy as a way to escape the costly rental market and get a foothold on the property ladder.

And for many, the cost of home ownership with Help to Buy is proving to be significantly more affordable than imagined.

Sara Parker, Regional Sales Director for Bloor Homes South West, explains: “In Bristol, the average rent for a property is around £1,220 per calendar month, according to figures from home.co.uk.

“A two-bedroom home at Bloor Homes @ Keynsham development is available to purchase from £279,950. A representative example from the Mortgage Brain shows that using Help to Buy, buyers could secure this with a 5% deposit of £14,000, a Help to Buy loan of 20% for £55,990 and a 75% mortgage for the remaining £209,960, payable over 35 years.

“There are a range of competitive mortgage rates available with this scheme, starting from as little as 1.44%, so it’s worth comparing lenders to find the best deal because it’s possible your monthly mortgage repayments could be less than rent.

“As well as helping buyers to take that all-important step onto the property ladder, Help to Buy is also enabling existing homeowners to move up into larger properties that better suit their needs.

“Most of us would rather own our own home and know that our monthly mortgage repayments are going towards paying off our own mortgage. What’s more, if the value of our homes increases, we enjoy the benefit rather than someone else.

“As homeowners, we can choose to decorate without needing to seek approval from a landlord and we will reap the rewards from any increase to the value. 

“Across the UK around 40,000 households a year are using Help to Buy. At our developments in the South West, we’ve certainly seen a surge in popularity with the scheme. If this trend continues, we will see a 100% increase on sales using Help to Buy across the region during our financial year.

“From April 2021, Help to Buy will only be available for first-time buyers, so we are encouraging those looking to upsize or move to a new area to act fast before they can no longer take advantage of the scheme.”

Key points of Help to Buy:

  1. Help to Buy is available across all Bloor Homes developments in England on homes worth up to £600,000.
  2. Help to Buy is a government-backed scheme that enables buyers to purchase a property with just a 5% deposit and 75% mortgage.The remaining 20% of the purchase price is provided as an equity loan, which is interest free for the first five years.From year six, a fee of 1.75% is payable and will rise annually by RPI inflation plus 1%.
  3. The equity loan provided by the government is up to 20% of the value of the property.
  4. Existing homeowners can use Help to Buy, however they must have sold their existing property before completing their Help to Buy purchase.
  5. Help to Buy will not be available to existing homeowners after 2021.The scheme was due to end in 2021, but the Government has extended the scheme until 2023, however this will just be for first-time buyers and a regional price cap will be introduced.
  6. From 2021, Help to Buy will only be available on new build properties in the South West up to the value of £349,000.
  7. There is no buy-to-let option within the scheme.It is only available to purchasers using the property as their main residence.
  8. Repayment mortgages are the only option with this scheme.
  9. Your home may be repossessed if you do not keep up payments on a mortgage or any other debt secured on it

For more information on Bloor Homes, please visit www.bloorhomes.co.uk

[1] According to latest Lettings Sector Index

[2] Data from Hamptons International Index Report