H2B 2 saves £22.1bn in deposits
There are currently 665,000 homes on the market that, at under £600,000, are eligible for the scheme. At an average asking price of £222,168 the scheme could reduce total deposit requirements by £22.1bn.
And the average deposit requirement to buy a property under Help to Buy 2 has fallen to £11,108 and has been reduced by £33,325.
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.”
Under the scheme the government contributes 15% of the value of the property in the form of an equity loan and the borrower is required to put in a 5% deposit from their own pocket.
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, the Zoopla data shows.
An average home on the market in Yorkshire and the Humber can now be bought with a deposit of £8,129, the lowest level across the country whereas before Help to Buy 2 a 20% deposit in the region would have cost the average buyer £32,518.
The North East, the North West, Wales, the West Midlands, the East Midlands and the West Midlands all fall into the sub £10,000 deposit bracket.
In London where house prices are much higher the scheme will reduce the average deposit requirement by £48,309.
Hall said: “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.”