240 loans were given to first-time buyers in Dorset using the scheme in the year to March, according to data from the Ministry of Housing, Communities and Local Government
A record number of households purchased their first home in Dorset through the Government’s Help to Buy equity loan scheme last year, figures reveal.
Until March 31, the scheme allowed buyers to borrow up to 20% of the value of a new build home – rising to 40% in London, provided they paid at least a 5% deposit and the home cost no more than £600,000.
According to data from the Ministry of Housing, Communities and Local Government, 240 loans were given to first-time buyers (FTBs) in Dorset using the scheme in the year to March, 127 more than the previous year and the highest number since the scheme launched in 2013.
They were among 343 households in the area which benefitted from the scheme, meaning 70% of the loans were handed out to people buying their first home.
The loans amounted to £22.6 million in total, equating to an average of £66,000.
But 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.
Anya Martin, director, 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, she said.
Since April 2013, the average purchase price of properties bought with a Help to Buy equity loan nationally has been £277,300, with an average loan of £61,200.
Changes to Help to Buy equity loan scheme were brought in from April, meaning it is now only open to FTBs, with house price caps set regionally instead of nationally.
Housing Secretary Robert Jenrick said: Over 55,000 households bought their home with the support of Help to Buy equity loan last year: a record year for the scheme, which is helping young people and first-time buyers feel the sense of pride and achievement that comes with owning your own home.
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