Help-to-buy demand surges amongst first-time buyers
The New Homes Index has tracked new home buyer searches across England during May, its findings reveal that first-time buyer demand for help-to-buy properties has surged by 19% since the new scheme came into effect 1 April 2021. A sign that the new help-to-buy scheme, which requires new entrants to homeownership to put down a 5% deposit, is helping first time buyers to make the most of lockdown savings to get on to the property ladder.
• Help-to-buy new home demand searches jumped during May by 19%.
• Average help-to-buy property prices across all regions continue to stay below the government’s help-to-buy scheme price caps. This provides reassurance to first-time buyers now able to benefit from the scheme.
Daniel Hill, Managing Director, WhatHouse? comments:
“Spring is traditionally the new housing markets busiest time. This year, it comes after months of lockdowns and restrictions when many would-be first-time buyers have had time to knuckle down with saving for a house deposit. The help-to-buy scheme’s requirement of 5% deposit seems to be making all the difference, and we’re seeing high-volumes of first-time buyer searches as home ownership becomes attainable”.
| Region | Price Cap | Average help-to-buy new property price |
| East Midlands | £261,900 | £240,213 |
| East of England | £407,400 | £292,456 |
| London | £600,000 | £427,800 |
| North East of England | £186,100 | £134,543 |
| North West of England | £224,400 | £161,113 |
| South East of England | £437,600 | £316,620 |
| South West of England | £349,000 | £281,996 |
| West Midlands | £255,600 | £180,529 |
| Yorkshire & The Humber | £228,100 | £169,170 |
Stewart Baseley, Executive Chairman, House Builders Federation said:
“Even with a lower proportion of homes being purchased with Help to Buy, builders in all price brackets are reporting very high levels of interest from consumers, demonstrating confidence in the product and the industry with consumers increasingly recognising the benefits of new homes over older properties.”
Kindly shared by Whathouse
Main photo courtesy of Pixabay
