By Nicky Burridge The number of people using the Government’s flagship scheme to buy a home slumped by one-third during the first quarter of this year. Only 8,223 households took advantage of the Help to Buy equity loans scheme to purchase a property during the three months to the end of March, government figures showed. But commentators attributed the decline to traditional seasonal factors and the current slowdown in the property market. Ed Stansfield, chief property economist at Capital Economics, said: “This is not a sign that the scheme is losing its allure to buyers. “Rather it is simply part of the normal seasonal volatility seen in housing market activity.” He added that the number of Help to Buy equity loans was 21% higher than in the same quarter of 2016. Separate figures showed the Government has handed out more than £54m through its Help to Buy ISA scheme. A total of 62,528 property completions have been supported by the scheme since it was first launched in December 2015, with savers receiving an average bonus of £625. The property market saw a significant slowdown during the first quarter of the year as a combination of economic and political uncertainty and stretched affordability means potential buyers aren't budging. Traditional seasonal factors are also likely to be at play, with Help to Buy numbers falling during the first quarter of every year since the scheme’s launch. But the year-on-year increase suggests the scheme still remains popular with those struggling to get on to the property ladder or trade up it.Help to Buy scheme: a one-bedroom flat – just a five-minute walk from West Ruislip Station – is being sold in Ickenham, Middlesex, for £430,000 A total of 120,864 households have bought a property through the Help to Buy equity loan scheme since it was first launched in April 2013. At 81%, the majority of these were first-time buyers, showing the scheme is reaching its target audience. The average person using the scheme bought a property worth £236,041. Three-quarters of those who were helped had a household income of less than £60,000, while one-in-four people had incomes of between £30,000 and £40,000. The Help to Buy equity loan scheme is the Government’s flagship scheme to help first-time buyers, although those trading up the property ladder can also use it. The scheme enables people to buy a new build property with just a 5% deposit, with the Government providing an equity loan equivalent to 20% of the property’s value, rising to 40% in London. The equity loan is interest free for the first five years. The Help to Buy ISA aims to assist people saving for a deposit for their first-home. People can save up to £12,000 in the ISA, and the Government will top this up with a 25% bonus worth up to £3,000. More than 285,000 households have bought a home using one of the Government's Help to Buy schemes, including the equity loan, the discontinued mortgage guarantee and the Help to Buy ISA.Another Help to Buy property is available in Wymondham in Norfolk. This four-bedroom home is being sold on Zoopla for £310,000
The number of people using the UK government's Help-to-Buy equity loan scheme fell by a third during Q1 2017, with 120,864 households participating. While a significant slowdown in UK property contributed, chief property economist at Capital Economics, Ed Stansfield, said the slump was consistent with normal seasonal volatility, and that year-over-year, the scheme had issued 21% more equity loans for the quarter. Since its inception in April 2013, the equity loan scheme has been used by just 8,223 households to buy property - 81% were first-time buyers.