England’s Help to Buy scheme has been a vital tool for first-time homebuyers struggling to step onto the property ladder. Over the past decade, the program has successfully facilitated the purchase of homes worth a whopping £24.7 billion, assisting a total of 387,195 first-timers. Recently released research by Lomond, which looks into government data from 2013 to 2021 and the latest scheme ending in 2023, shows where Help to Buy has made the most significant impact.
Hotspots for Home Ownership
Certain areas have seen a disproportionately high number of Help to Buy transactions, indicating where the scheme has been particularly effective. The top hotspots include:
- Central Bedfordshire: Leading the pack, Central Bedfordshire saw 5,736 Help to Buy transactions, representing 1.5% of all such sales in England. This area has proven to be the most crucial for first-time buyers benefiting from the scheme.
- Wiltshire: Following closely, Wiltshire facilitated 5,295 Help to Buy deals, accounting for 1.4% of the national total.
- Milton Keynes: This region also stood out, with 1.2% of all Help to Buy homes sold here.
Additional significant contributions came from Wakefield, Leeds, Cheshire East, County Durham, and Bedford, each hosting over 1% of the total national Help to Buy transactions.
Regional Breakdown of Impact
While the South East emerged as the region with the highest number of transactions, accounting for 18.2% of all Help to Buy sales, it was London that saw the highest value of transactions. A staggering £6.9 billion worth of properties in London were purchased under this scheme, highlighting the city’s challenging property market.
Challenges Ahead for First-Time Buyers
Despite the program’s success, the discontinuation of Help to Buy spells potential trouble for prospective homeowners. According to Ed Phillips, CEO of Lomond, “There’s no doubt that Help to Buy had a significant impact in helping hundreds of thousands of first-time buyers onto the property ladder.” He also noted the ongoing challenges, including rising mortgage rates and the increased cost of living, which could make it tougher for new buyers.
Phillips emphasises the need for continued support for first-time buyers, especially as property values and other factors like stock availability and earning ability remain significant hurdles. Without addressing these issues, the UK might see a generation of potential homeowners perpetually stuck renting, not out of choice but necessity.