The HBF said that interest in the scheme, under which the Government grants equity loans of up to a 20% deposit to purchasers with at least a 5% deposit, has been "huge", with around 500 people a week taking advantage of the scheme.
The scheme was announced in the 2013 Budget speech in March and launched on 1 April. As well as the equity loan scheme, Help to Buy also comprises a mortgage guarantee initiative under which the Government will provide guarantees to lenders offering mortgages to buyers with a deposit between 5% and 20%. The mortgage guarantee will launch on 1 January 2014.
“The Equity Loan part of Help to Buy has got off to a flying start," said HBF executive chairman Stewart Baseley in a statement. "It has been an unqualified success so far and 4,000 reservations in just two months show both the consumer demand for the scheme and developers’ commitment to it."
“The large deposits required in recent years to secure a mortgage have prevented many from buying, and as a result, builders from building. The Equity Loan scheme helps consumers overcome that deposit barrier and as a result the scheme will undoubtedly lead to an increase in house building," Baseley said.
"Already we are seeing companies revise their projected build levels as a direct result of the scheme. This in turn will create jobs and deliver an economic boost," he added.
“Customer interest in the Help to Buy scheme has been very strong as it addresses the issue of lack mortgage finance at higher loan to values," said developer Barratt's chief executive Mark Clare. "Interest has been particularly encouraging from customers previously locked out of the market by high deposit requirements."
Clare said that, since the Budget announcement, Barratt's reservations figures had increased by 18% compared with last year and visits to its website had increased by 30%.
