There are fewer properties eligible for the government’s Help to Buy scheme on the market, new analysis of property website Zoopla.co.uk shows.
The number of eligible properties has fallen by 7.4 per cent within a year, Zoopla warned.
The analysis of properties for sale in England and Wales up to a value of £600,000 also shows that the average price of properties for sale that qualify for Help to Buy has risen 5.5 per cent since March 2014.
The biggest fall in properties eligible for Help to Buy in the past year has been in the East of England, with a 12.3 per cent reduction in suitable stock on the market. At the same time, average prices have climbed 6.1 per cent. In London, the typical value of a property qualifying for Help to Buy has grown by 11.7 per cent since March 2014.
Lawrence Hall of Zoopla.co.uk commented:
“The Help to Buy scheme was intended as a leg up for flailing first-time buyers, but in some areas that footrest has since been pulled from under their feet. Greater demand hasn’t been met by greater supply of homes on the market, and instead the soaring price growth of the past year appears to have airlifted many properties out of the starter home zone. The pool of homes on the market within reach of Help to Buy assistance needs to expand, or this pinch on supply will continue to inflate prices at the bottom rungs of the ladder.”
| Region |
% Change in Stock Levels |
% Change in Av. Property Value (Properties up to £600,000) |
| East of England |
-12.3% |
6.1% |
| South East England |
-9.9% |
6.8% |
| Yorkshire and The Humber |
-8.9% |
0.7% |
| East Midlands |
-8.6% |
5.0% |
| North West England |
-7.2% |
1.3% |
| North East England |
-7.2% |
2.2% |
| West Midlands |
-6.6% |
4.5% |
| London |
-4.7% |
11.7% |
| South West England |
-4.6% |
4.5% |
| Wales |
-0.8% |
0.6% |
