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56 homes bought in Devon with state-backed loans

By Exeter Express and Echo  |  Posted: May 29, 2014

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A total of 56 homes have been bought with state-backed mortgages in the first six months of the Government's Help to Buy scheme, it has been reavled today.

The first published figures on the controversial scheme show that the average price of the property bought in the Southwest with Treasury help towards a deposit was £148,980. The scheme opened in October last year.

A further 1,056 properties have been bought with the second element of the programme, an equity loan scheme which was launched in England last spring.

Both schemes allow people to move onto or up the property ladder with a deposit of just 5% but unlike the mortgage guarantee initiative, the equity loan scheme is aimed at new-build homes only.

Critics have warned the scheme will prompt a property "bubble", though most fears surround the over-heating London market.

But the Government yesterday pointed out the average house price for both schemes was around £190,000 – and £150,000 for the mortgage guarantee loan – which is well below the national average of £252,000.

This appears to be being borne out in the Westcountry, where many first-time buyers struggle to get on the housing ladder with higher prices fuelled by second-home buyers flooding the market on coastal and rural areas.

In Devon, 56 homes were bought with Help to Buy Loans , at an average price of £156,654. The typical price of a home in the county is £147,544. There have 396 equity loans in Devon.

Prime Minister David Cameron welcomed the figures while on a visit to a construction site in Ilkeston in Derbyshire, where Taylor Wimpey is building 280 new homes.

He said: "Help to Buy has helped thousands of hardworking people to buy a new home and crucially it is helping to increase the number of new homes being built around the country.

"It is an important part of our long term plan to back those who want to get on and to secure a better future for Britain.

Plymouth has recorded 41 homes sold with Government loans at an average price of £134,285. This is slightly above the £130,124 average cost of a home in the city. A further 90 new-builds have been bought with an equity loan.

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