So-called affordable homes cost £190,000

Mortgage Introducer

July 27, 2015

On a regional basis the highest average price paid using affordable housing schemes was in London at £323,100, while the lowest was in the North at £147,400.

Four in five (80%) house purchases with schemes were made by first-time buyers, while for that demographic alone the average price paid is slightly lower at £150,000.

Craig McKinlay, mortgages director at Halifax, said: “Many of the affordable home ownership schemes available have been designed specifically to help first-time buyers get on the ladder and support construction of new build homes.

“The latest official figures show this has been successful, as Help to Buy and Help to Buy NewBuy schemes have helped close to 80,000 first-time buyers on to the housing ladder since Help to Buy’s introduction in 2013.

“As the economy continues to recover and mortgage interest rates remain at very low levels. We expect to see continued growth in first-time buyers during the second half of the year.”

First-time buyers in London benefitted most from affordable housing schemes, as the average price paid was over a third lower (36%) than the typical price paid by FTBs in the capital (£236,733 vs. £367,961).

Of all the affordable housing transactions in the 12 months to May 2015 17% were in Scotland followed by the South East (15%) and the North West (10%). A fifth (20%) were in the South East, around one in eight (12%) were in Scotland and 10% were in London.

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