Help To Buy Equity Loans Slowing House Price Inflation

Analysis by Mortgage Advice Bureau (MAB) claims that Help to Buy has stimulated house building sufficient to slow price inflation by half its previous rate last year. Over the last 12 months, the mortgage broker claims that the annual growth of newbuild prices across the UK has shrunk from 4% to 2% in the last 12 months and attributes this to the Help to Buy scheme. Every region with more than 1,500 Help to Buy equity loan completions has seen new build price growth slow down over the last year, it said, and experienced less growth of new build prices compared with prices across all homes.  In five of the seven regions where the equity loan scheme is most active, new build prices have also risen slower than the UK new build average.  Instead of driving up the cost of new build properties, MAB suggests that Help to Buy 1 is successfully boosting access for first time buyers by increasing supply and helping to keep prices in reach. Read more on the Housing Excellence website.