The UK’s housing minister has told the House of Commons that the government’s Help to Buy scheme is have a hugely positive effect on enabling first-time buyers to purchase their own home.
Kris Hopkins said that the first phase of the initiative has helped 15,000 prospective homeowners reserve a new property in just six months.
He added that Help to Buy was making a great difference following the housing crash of 2008 – which resulted in many people being unable to get onto the property ladder.
Mr Hopkins said of the second phase: “The tremendous response that RBS, for instance, has had, with some 10,000 inquiries in the first four working days, demonstrates that the government is on the side of hard-working people.”
The MP for Ilkley also warned against speculation in the media that the second phase of Help to Buy could result in a housing bubble.
Under the scheme, potential buyers can secure mortgages for properties worth up to £600,000 with just a five per cent deposit, while the government then guarantees a further 20 per cent to allow access to preferential interest rates.