First Time Buyers benefiting from affordable housing schemes

First-time buyers (FTB) remain the biggest beneficiaries of affordable housing schemes and accounted for 65% of purchases over the last year, Halifax's latest Affordable Housing Review has revealed.

This represents a significant increase on the 40% which it accounted for last year.

The schemes have particularly helped younger buyers, with 40% of all affordable home buyers in the age band 20 to 29, a significantly higher proportion than in the market as a whole where they make up 25% of all housing sales.

However in spite of the success of affordable housing schemes amongst this group, there is a lack of understanding of the support available to first-time buyers through the government initiatives such as NewBuy and Help to Buy.

Less than a third (30%) of 20-45 year olds have welcomed the initiatives or think they work at encouraging and helping people to get on the property ladder.

Craig McKinlay, mortgage director at Halifax, said: "Many of the affordable home ownership schemes available have been designed specifically to help first-time buyers get on the ladder and boost new build sales.

“They can help people realise their ambitions to become homeowners, whilst also providing the potential to boost levels of housebuilding, which could help to alleviate housing supply issues.

"The recent introduction of the Help to Buy equity scheme may well play an important role in meeting demand by targeting all buyers, not just those buying for the first-time. The Help to Buy mortgage guarantee, to be launched in January 2014, will also extend assistance to buyers looking to purchase existing properties as well as new builds."

The average price paid for properties purchased under the various affordable housing schemes in Britain is £167,9554. This is 10% lower than the £185,3244 average for all house purchases.

Peter Lawrence at Lawrence Rand said: “The UK needs a mixed and flexible housing market that embraces owner occupancy, private and social rental. Providing affordable options is key to the sustainability of the market.”