View more on these topics

‘30% of new-builds rely on Help to Buy 1’

Lloyds Banking Group homes and lifestyle director Stephen Noakes says 30 per cent of new-build construction is reliant on the first part of the Help to Buy scheme.

Speaking at a housing fringe event at the Labour conference in Manchester last week, Noakes said the equity loan part of Help to Buy accounts for up to 6 per cent of Lloyds’ mortgage lending.

The Help to Buy equity loan scheme was introduced last year to offer buyers a 20 per cent Government loan to buy new-build property up to 95 per cent loan to value. It was due to expire in 2016 but has been extended until 2020.

Noakes, who is also chairman of the Council of Mortgage Lenders, says: “Help to Buy has helped quite considerably in new build construction. The industry view is that it supports about 30 per cent of current building activity.

“The reason the equity schemes are in existence is affordability and whether the normal mortgage market supports new build. There has been some paucity of mortgage finance on new build.

“It is also about finding different solutions to make the affordability for home ownership accessible for a broader part of the population. Lloyds now lends up to 90 per cent on new build and second hand.

“The reason there was a period with inequality on mortgage finance with new build versus second hand was because of some of the risk concerns from lenders after the crisis. The work between the CML and Home Builders’ Federation has largely taken those problems away.”

Labour MP Graham Jones says: “I’m not sure Help to Buy will increase the supply of homes, it is a demand-side led solution which is a bit risky.”



RBS chairman to leave next year

Royal Bank of Scotland has announced its chairman Sir Philip Hampton is to step down next year. The bank says Hampton, who has served as chairman for five years, will leave during 2015 after a successor has been appointed. He will become a non-executive director on the board of GlaxoSmithKline from January 2015 and will […]


The Mortgage Mole: Lasting Impression

Lasting Impression Mortgage Strategy editor Paul Thomas has spent the past five years chasing down stories for the mortgage industry but Mole hears he has been making an altogether different type of splash of late. Having recently enjoyed a sojourn in Portugal with friends, Thomas – or PT, as friends, colleagues and apparently the Portuguese […]


Caption Competition – 1 October 2014

Can you put the boot in to your nearest and dearest to win a delicious box of Hotel Chocolat milk chocolates? Submit a witty caption for the photo above and you will be automatically entered into our prize draw. Remember, the funnier it is, the more likely you are to win. What are you waiting […]

London prices rise over twice as fast as rest of England and Wales

London house prices grew at over twice the rate of the rest of England and Wales in August, according to the Land Registry. The figures show house prices in London grew at 21.6 per cent year-on-year, from £386,008 to £467,070, in August. Prices in England and Wales grew 8.4 per cent year-on-year, from £164,116 to […]

Default image

Health Shield announces strong results

Health Shield, a corporate health cash plan provider, has announced that it has increased gross annual premium income to more than £25m in another year of strong organic growth.


News and expert analysis straight to your inbox

Sign up