130,000 homes bought under Help to Buy scheme since 2012 launch

Some 130,000 homes have been purchased under the Government's flagship Help to Buy scheme since its launch in 2012, new figures have shown.

The average price of homes bought under the scheme was £186,000 - well below the national average of £286,000 - and 80% of purchasers were first-time buyers.

The figures, released by the Treasury, showed that the vast majority (94%) of homes sold under Help to Buy were outside London, and almost half were newly-built properties.

The latest statistics, which cover the period up to September, come a week after the launch of the new Help to Buy ISA, which offers first-time buyers a Government bonus of up to £3,000, from taxpayers' money, to boost savings for a home.

Chancellor George Osborne said: "This Government is committed to helping people achieve the aspiration of buying their own home, and our Help to Buy schemes have now helped 130,000 across the UK do just that.

"The stronger economy and financial system means we expect banks to start to exit our Help to Buy Mortgage Guarantee scheme, which was introduced in times of financial distress and is due to come to an end.

"Supporting people who want to work hard, save and buy their own home is a key part of our long-term plan to provide economic security for working people at every stage of their life, across the UK. Help to Buy is also boosting the nation's economic security by driving an increase in house building in Britain, ensuring long-term housing supply and creating jobs."

The executive chairman of the Home Builders Federation, Stewart Baseley, said it was "no coincidence that since Help to Buy has unlocked demand for new homes and allowed buyers to buy, the supply of new homes has increased by almost 40%".

Mr Baseley said: "The industry is now providing more desperately needed high quality homes and creating tens of thousands of jobs across the country."

The highest number of purchases under Help to Buy has been in the south east of England (18,545), followed by the North West (16,870), east of England (15,007) and East Midlands (13,069).

The Help to Buy Mortgage Guarantee scheme, which is due to end next year, provides a Government guarantee on mortgages where a borrower has a deposit of between 5% and 20%. Under the Help to Buy Equity Loan scheme, the Government lends up to 20% of the cost of a new-build home.