Help to Buy signs up 7,000 new buyers over last three months

THE GOVERNMENT’S flagship Help to Buy scheme has signed up 7,000 buyers since it launched in mid-April, according to housing minister Mark Prisk.

The scheme, which is available to all homebuyers, is designed to boost the economic recovery by encouraging the construction of new homes. Buyers receive a 20 per cent equity loan, interest free for five years, to buy a property from a participating housebuilder with a value of up to a £600,000.

More than 1,000 buyers have already completed the purchase of their new property using the scheme.

However, chancellor George Osborne last week had to defend the programme against accusations that it is encouraging reckless borrowing and could create another property bubble.