Help to Buy isn’t enough help to buy in London

Research shows most people can’t use the scheme

A single, full-time average earner using Help to Buy will still not be able to buy a average-priced house in any London borough, according to a study by Savills.

It seems the Help to Buy scheme, which was launched in 2013 and expanded in the Autumn Statement to help first time buyers in London access a 40% loan from the government with a 5% deposit, is still not enough for most people.

Property prices in the capital now average more than half a million pounds, which would exceed the maximum lent out by mortgage providers for the majority of people.

A 5% deposit isn’t easy for Londoners to save either, equating to more than £25,000 for the average London home. In addition, cash for land tax and stamp duty needs to be paid up front.

Lucian Cook, director of residential research at Savills said: “There remains a deposit barrier, even though it is vastly reduced because of the equity loan.

“It doesn’t open the market because you still need to find substantial capital for the deposit and stamp duty to make a go of it,” he said.