Deposit requirements drop under Help to Buy

Deposit requirements drop under Help to Buy

Help to Buy 2 makes buying a home with just £10,000 possible in six out of 10 regions across England and Wales.

Even would-be buyers in London can get on the property ladder with an average deposit of just £16,103, according to new research by property website
That's equivalent to 5% of the average London asking price of £322,057.

As the second phase of the scheme comes into effect, the average deposit requirement across England and Wales has fallen to just £11,108, a drop of £33,325.
In Yorkshire & Humber, it is possible to buy the average property, which costs £162,588, with a deposit of just £8,129. That is the lowest in the country.

Buyers can also get on the property ladder with less than £10,000 in the North East (£8,876), the North West (£8,903), East Midlands (£9,340), Wales (£9,400) and West Midlands (£9,568).

In the South East, the average deposit required under Help to Buy is just £13,245, equivalent to 5% of the average property price of £264,905.

The research also showed that 665,000 properties currently on the market are eligible for the scheme. The average asking price is £222,168.

The 15% reduction in deposit requirement seek equals an average saving of £33,325. That rises to £48,309 in London.

Zoopla calculates that Help to Buy 2 will cut total deposit requirements by £22.1 billion and help thousands more would-be buyers fulfil their aspiration of homeownership.

Lawrence Hall of Zoopla said: “Help to Buy 2 won’t just narrow the aspiration gap, it could help close it entirely.

"House prices are beginning to rise, savings rates are low, inflation is consistently above target and wage increases aren’t keeping pace. It makes saving for a 20% deposit on a property very difficult for many. 

"Even people with well-paid jobs are being priced out of the market. The new scheme helps address that problem, making the first rung of the ladder much lower for would-be buyers who want to get a foot on it. 

"People everywhere need help. Help to Buy can make housing market a place for the many, not the few.”