The total amount which Help to Buy 2 could knock-off deposit requirements for aspiring homeowners across England and Wales is £22.1 billion, according to new research by property website Zoopla.co.uk.
With 665,000 homes currently on the market that are eligible for Help to Buy 2 (with asking prices under £600,000) at an average asking price of £222,168, the scheme could reduce total deposit requirements by £22.1bn and help thousands more would-be buyers fulfill their aspiration of homeownership.
Now that the second phase of the scheme has come into effect, the average deposit requirement to buy a property under Help to Buy 2 has fallen to only £11,108 and has been reduced by £33,325.
And under the new scheme, the average deposit required to buy an eligible property has fallen below £10,000 in six out of the ten regions across England and Wales. An average home on the market in Yorkshire and the Humber can now be bought with a deposit of only £8,129 – the lowest level across the country.
Before Help to Buy 2, a 20% deposit in the region would have set an average buyer back £32,518. The average buyer can now also get on the housing ladder with a deposit of under £10,000 in the North East, the North West, Wales, the West Midlands, the East Midlands and the West Midlands.
In London, where house prices are much higher, the scheme will reduce the average deposit requirement by £48,309.
Lawrence Hall of Zoopla.co.uk 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.”
