New research shows the areas where the government’s Help to Buy scheme has aided the most buyers – so, does your town make the top 10?
The Help to Buy equity loan scheme has played a part in 144,826 house purchases since its launch in April 2013, with 81% of these homes going to first-time buyers.
Here, we take a look at the UK’s Help to Buy hotspots, and offer advice on whether the scheme is a good option for first-time buyers in 2018.
Help to Buy hotspots: most popular areas
Credit report agency TotallyMoney has analysed government data to reveal the most popular areas of the UK for Help to Buy purchases.
The interactive map below shows the UK’s top 10 Help to Buy hotspots. To find out how other areas fared, you can check out the full Help to Buy map from TotallyMoney.
Top UK cities for Help to Buy
Aside from local authorities, the research also looked at cities around the UK.
The most popular places for Help to Buy were primarily in the North of England, the data revealed.
Again, affordability remains the key indicator of a popular area – each of the 10 cities shown below has an average house price well below than the overall UK figure of £226,756.
|Rank||City||Av. property cost||Equity loans to first-time buyers||HTB Isa completions||HTB Isa bonuses paid||Av. value of homes bought with HTB Isa|
Source: Totally Money analysis of MHCLG data
Is Help to Buy a good idea for first-time buyers?
In January, we assessed whether Help to Buy remains a good option for first-time buyers, and found that those who could save more than the minimum 5% deposit could be better off taking out a traditional mortgage.
Whether Help to Buy is right for you depends on your individual circumstances, so it’s best to take independent financial advice before rushing in.
Here are some of the main pros and cons of the scheme, at a glance:
|You can buy a property with a 5% deposit||The government has a 20% (or up to 40% in London) stake in your home|
|The equity loan enables you to get a better mortgage deal than if you were taking out a 95% mortgage||After five years, you’ll need to start paying interest on your equity loan|
|You own a brand new house with a warranty covering any defects||The scheme is only available on new-build homes|
|There’s no interest to pay on your equity loan for the first five years||Homes bought using Help to Buy tend to be more expensive than equivalent existing properties|
|Buyers in London can get an equity loan of up to 40%||Remortgaging at the end of your fixed term can be an issue with an outstanding equity loan|
Buying your first home
If you’re considering buying your first home, it’s a good idea to weigh up the various options available to you.