The government’s Help to Buy scheme has resulted in almost £1 billion of new lending after the number of people applying for assisted mortgages more than trebled in the last two months.
Over 6,000 people have now applied for a Help to Buy mortgage, up from 2,000 in November and almost 750 homeowners have now completed their purchases.
The Help to Buy scheme, launched in October, allows people to apply for government-backed mortgages with as little as 5% deposit.
Prime minister David Cameron branded the scheme a success and said he hopes to see ‘thousands more realise their dream of home ownership’.
However, Labour have criticised the government, warning that the scheme risks creating a housing bubble with shadow housing minister Emma Reynolds calling for more affordable housing to build, pointing out that ‘under this government house-building is at its lowest level since the 1920s.’
House prices across England and Wales rose by 3.2% in the year to the end of November, according to the Land Registry, with London properties surging by 10.6%.