Help to Buy completions dropped off last year

The Help to Buy equity loan saw fewer completions between October and December 2022, with 8% fewer transactions, at 8,227.

The scheme has been closed to new applications since October 2022 and, with the deadline for completions being 31 May, it’s expected there will be a further tailing off of completions.

As has been widely publicised, the government is thinking of bringing back the scheme , which has prompted a mixed reaction from both in and outside the property industry.

Karen Noye, mortgage expert at Quilter, said:

“Given the huge increase in house prices over the last few years, coupled with the fact they have not yet fallen in the way many had expected, this dip in completions as the scheme nears its end is not surprising.

“The current cost-of-living pressures are having a real impact on the property market and high house prices mean taking a first step onto the property ladder has been pushed out of reach for many, and this has naturally reduced the scheme’s completion rate.”

The West Midlands has suffered the greatest drop in completions, reducing by 42% in 2022 Q4 compared to the same period a year earlier.

There was a smaller decrease of 12% in the South West and South East.

Kindly shared by Property Wire

Main article photo courtesy of Pixabay