A total of 15,341 properties were bought using Help to Buy loans between 1 January and 31 March this year, a 61% increase on the same period in 2020.

New government figures showed that 328,506 properties have now been bought since the scheme was launched, in the period between 1 April 2013 to 31 March this year.

In total, the value of the total value of these equity loans so far totals £20.1bn, while the value of the properties sold under the scheme now totals £91.1bn.

The figures, from the Ministry of Housing, also confirmed that 82% of all completions through the scheme have been by first-time buyers.

Commenting on the statistics, Hargreaves Lansdown personal finance analyst, Sarah Coles, noted that the 12 months to the end of March saw the highest number of loans on record.

“While rising prices make this scheme particularly handy for those struggling to raise a bigger deposit, they also bring extra risks,” Coles said.

“Help to Buy equity loans provide an answer to the impossible question of how to buy in a rapidly rising property market. Most people who use them have a 5% deposit (54%), and the scheme stops them battling to raise a bigger percentage of the property price at a time when the average property rose more than £27,000 in a year.

“However, while Help to Buy loans offer a solution to those struggling to buy in a rising market, the way they work means the same rising market will have a sting in the tail for anyone who takes advantage. When the loan is eventually repaid to the government, the amount that needs to be paid back depends on the value of the house at that time. If you borrow 20% of the purchase price, you repay 20% of the value after five years, so when prices rise, so do your repayments.”

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