The number of eligible homes under the Help to Buy scheme in England and Wales has fallen by 1.9 per cent since last October, while average prices have risen, according to property website Zoopla.co.uk.
Since the second part of Help to Buy, i.e. the mortgage guarantee element, was introduced last October, a lack of housing supply has pushed up the average price of properties eligible for the scheme by 2.2 per cent, from £222,168 to £227,010 today.
The biggest falls in stock levels since October have been in the South East of England where the number of eligible properties is down by 7.4 per cent, while average prices have risen 3.6 per cent over the same period and now stand at £274,464.
London has also seen a significant drop in the number of properties eligible under Help to Buy which has fallen by 6.7 per cent since October. Wales and the Midlands are the only regions to have seen increases in the number of Help to Buy eligible properties available.
The biggest fall in properties eligible for Help to Buy over the last six months has been in Brighton where there are now 15.8 per cent fewer properties for sale that meet the criteria than there were in October. Walsall and Stockport have also seen large drops in eligible stock with 14.9% and 14.7 per cent fewer properties for sale respectively.
In contrast, Middlesbrough, Wirral and Newport have seen the largest increases in the number of properties that qualify for the scheme coming onto the market with rises of 38.7 per cent, 37.4 per cent and 25.5 per cent respectively.
Lawrence Hall of Zoopla.co.uk commented: “The Help to Buy scheme was introduced to help grease the wheels for buyers locked out of the market. But fuelling demand was also expected to spark sellers into action and increase the supply of properties available on the market.
“That spark seems yet to ignite as the overall level of properties eligible under Help to Buy has actually fallen over the last six months. Unless stock levels increase, the supply shortage will continue to put upward pressure on prices as more buyers enter the market.”
Ten locations with the biggest fall in Help to Buy eligible properties for sale
| Town |
per cent Change in Stock Levels |
Av. Asking Price Oct ‘13 |
Av. Asking Price May ‘14 |
% Change in Value |
| Brighton |
-15.8% |
£287,401 |
£301,704 |
5.0% |
| Walsall |
-14.9% |
£165,418 |
£163,671 |
-1.1% |
| Stockport |
-14.7% |
£212,385 |
£207,649 |
-2.2% |
| Romford |
-12.8% |
£258,574 |
£276,568 |
7.0% |
| Milton Keynes |
-12.5% |
£217,500 |
£224,410 |
3.2% |
| Wolverhampton |
-12.1% |
£192,359 |
£171,340 |
-10.9% |
| Bournemouth |
-7.4% |
£232,937 |
£228,715 |
-1.8% |
| Cambridge |
-6.7% |
£293,290 |
£302,695 |
3.2% |
| York |
-6.4% |
£246,539 |
£259,233 |
5.1% |
| Colchester |
-6.4% |
£230,520 |
£228,375 |
-0.9% |
Source: Zoopla.co.uk (May 2014)
Ten locations with the biggest rise in Help to Buy eligible properties for sale
| Town |
% Change in Stock Levels |
Av. Asking Price Oct ‘13 |
Av. Asking Price May ‘14 |
% Change in Value |
| Middlesbrough |
38.7% |
£149,569 |
£150,909 |
0.9% |
| Wirral |
37.4% |
£177,675 |
£192,068 |
8.1% |
| Newport |
25.5% |
£193,627 |
£186,068 |
-3.9% |
| Derby |
24.5% |
£189,375 |
£180,766 |
-4.5% |
| Northampton |
21.2% |
£207,073 |
£215,148 |
3.9% |
| Reading |
18.4% |
£286,091 |
£294,332 |
2.9% |
| Sheffield |
11.8% |
£157,602 |
£164,507 |
4.4% |
| Stoke-on-Trent |
11.5% |
£153,822 |
£158,094 |
2.8% |
| Ipswich |
8.0% |
£211,678 |
£218,022 |
3.0% |
| Cardiff |
6.6% |
£202,407 |
£204,089 |
0.8% |
Source: Zoopla.co.uk (May 2014)
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