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Last year, over 100 first-time buyers bought a home through the Government’s Help to Buy equity loan scheme in Warrington, where structural warranty specialist Advantage has its headquarters.

Until 31st March, the scheme allowed buyers to borrow up to 20 per cent of the value of a new build home, providing they paid at least a five per cent deposit and the home cost no more than £600,000.

122 loans were given to first-time-buyers in Warrington

housesMinistry of Housing, Communities and Local Government data, as reported by the Warrington Guardian, shows 122 loans were given to first-time buyers in Warrington using the scheme in the year to March – 41 fewer than during the previous year.

They were among 160 households in the area which benefitted from the scheme, meaning 76 per cent of the loans were handed out to people buying their first home.

The loans amounted to £10.6million in total – equating to an average of £66,100.

Across England, £4billion worth of Help to Buy loans were handed out in 2020-21, when more than 55,600 households benefitted from the scheme – a record high.

Helping young people and first-time-buyers own a home

keyringsInside Housing quoted Robert Jenrick, the housing secretary, who welcomed the figures. He said Help to Buy is:

“helping young people and first-time buyers feel the sense of pride and achievement that comes with owning your own home”.

Since the scheme’s launch, the total value of properties purchased has been £91.1bn, with an average purchase price of £277,264. Eight in 10 are first-time buyers.

Half of borrowers using Help to Buy had a combined household income between £20,000 and £50,000. Applicants with a household income of £100,000 or more represented 5% of the total.

Calls for more homes to be built

homeBut Priced Out, which campaigns for affordable house prices, said the fact so many people have to borrow money to buy their first home shows a ‘failure’ to control house price inflation.

Director Anya Martin said:

“Prices have risen faster than incomes for decades now, and all because we have failed to meet higher demand with higher supply.

“The Government is not doing enough to ensure more people can buy their first home.

“They hold the levers to stabilise or bring down house prices, but instead of allowing more homes to be built, they keep pumping up the market with more cash.”

Advantage’s view: As a business with numerous clients in the construction sector, as well as many individual housebuilders and social and affordable housing providers that work with us for latent defects cover, we take a keen interest in all things housing related. We welcome schemes like this one that help first-time buyers onto the housing ladder and also work with several local homelessness charities, including Giving Warm, to support those who don’t have a home of their own.

Do you require a structural warranty for your project? The Advantage team is proud to work with clients on developments throughout the UK to ensure that projects are covered by the appropriate structural warranty. To find out more, call: 0845 900 3969 or email: sales@ahci.co.uk