As many as 291,903 properties have been purchased using the government loan since the scheme was launched in April 2013 and 82% of those completions were made by first-time buyers (240,083).
And while overall the number of people taking advantage of an equity loan fell by 18% in the year to September 2020, the significant jump in Q3 demonstrates the extent of the property market recovery in the summer following the introduction of the stamp duty holiday.
The data out today from the Ministry of Housing, Communities and Local Government (MHCLG) revealed the total value of equity loans taken out since the scheme began was £17.4 billion and the value of properties purchased £79.2 billion.
Between 1 July and 30 September 2020, 13,211 properties were bought with an equity loan. Of this number 11,150 (84%) were bought by first-time buyers using a total value of equity loans of £795 million to purchase property worth a total of £3,386 million.
Vikki Jefferies, proposition director at PRIMIS Mortgage Network, said today’s figures showed the scheme had continued to be hugely popular among borrowers – particularly first-time buyers.
“Take up of the scheme soared even further in the third quarter of 2020, with first-time buyers continuing to make up the majority of purchases according to today’s statistics,” she said.
“The extension to the completion deadline for the current scheme further reflects the borrower demand that we have seen recently and will go a long way towards helping first-time buyers achieve their homeownership goals over the coming weeks.
“Current demand is also likely to continue as the financial impact of COVID-19 on households becomes clearer and more first-time buyers look to take advantage of government support to help them get onto the property ladder.
“There is a real opportunity here for advisers. By supporting borrowers with their decision-making, advisers will ensure that borrowers are knowledgeable about the government support that is available to them.
“By sharing this information, advisers will be able to give first-time buyers the confidence they need to take their first steps onto the property ladder and ensure that, ultimately, this group can contribute to the ongoing recovery of the housing market.’’
