The latest research from snagging and defect management app, BuildScan, has revealed that the latest Government Help to Buy (H2B) scheme could help over a half of all new-build homebuyers to get a foot on the ladder.
BuildScan first looked at the H2B equity loan price cap in each region of England and Wales, which is essentially the most expensive property to qualify for the scheme.
BuildScan then looked at the number of new-build homes sold in each region during 2020 and what percentage of these fell below their respective regional equity price caps to estimate how many homebuyers could be due to benefit yearly come April.
The figures show that across England and Wales, 32,158 new-build home sales completed in 2020, accounting for around 7% of all residential transactions. Of these, 17,724 would have fallen below the soon to be implemented H2B equity loan price caps for their region.
As a result, a notable 55% of all new-build specific sales in England and Wales would have, and could, qualify for the latest H2B scheme, providing a significant boost to otherwise beleaguered homebuyers.
The East of England could see the most new-build buyers benefit from the new H2B scheme, with 69% of all new-build transactions seen during 2020 coming in below the £407,400 equity loan price cap.
The South West and South East saw 64% of all new-build homes sold in 2020 fall within their respective H2B loan price caps of £349,000 and £437,600.
London’s new-build homebuyers could also be about to enjoy some of the most significant H2B benefits, with 63% of all new-build transactions in 2020 selling below the £600,000 price cap of the new scheme.
The North East is the region that could see the least benefit. However, 35% of all new-builds sold in 2020 still fell within the new £186,100 H2B price cap, meaning the scheme could benefit a good number of homebuyers when it launches in April.
Founder and Managing Director of BuildScan, Harry Yates, commented: “We’ve seen several Help to Buy schemes implemented by the Government now, and while they have their critics, you have to give credit where it’s due in terms of the sheer number of people it has helped onto the ladder.
Based on previous market data, it certainly seems as though this latest version will do the same, with more than half of new-build homebuyers due to fall within their respective regional equity loan price caps. When you consider the additional saving on offer due to the current stamp duty holiday, it’s arguably never been a better time to get a foot on the ladder.
Of course, with so many homebuyers looking to buy a limited level of stock, an increase in property values is bound to follow. So those considering a purchase are well advised to act sooner rather than later.”