Help to Buy sales down 41% in final three months of scheme

Originally, homes built under the scheme were supposed to be finished by the end of December last year, but that deadline was pushed back to 31 January due to construction delays.

It was extended again in January to give builders an additional six weeks to finish homes.

The latest data shows that 106 sales went through between April and May this year, down 99% on the same period in 2022.

However, a house builder could apply for an extension up to the end of May to allow purchasers to complete the buying process.

Regional price limits on what developers could charge for homes acquired using Help to Buy were introduced in April 2021, and take-up of the scheme gradually waned.

A spokesperson for the Home Builders Federation said: “With house price inflation as it was during 2020-22, the caps began to have greater effect.

“Also, builders started to change what was being built on the basis that the scheme was coming to an end.

“It was also a time of materials shortages, so investment was moderated, particularly for first-time buyer products.”

Nonetheless, more than 387,000 homes were bought using Help to Buy over the decade of its existence.

Lee Rowley, the minister for housing, said: “Helping more people into homeownership is a priority and Help to Buy has been pivotal in helping us achieve that.

“I want to do all we can to help more people realise the dream of owning their own home, which is why we’re investing £11.5bn to deliver the affordable homes we need.

“Our long-term plan for housing will allow us to go further, so we can help even more families and young people onto the property ladder.”