TWO IN THREE FIRST-TIME BUYERS IN LONDON DO NOT KNOW THE HELP TO BUY DEADLINE
72% of first-time buyers in London are unaware of the 31 October deadline to reserve a Help to Buy home.
84% are either incorrect or admit they do not know what the minimum deposit requirement is. The average given is over 10%, double the required amount (5%).
Only 4% are aware that the maximum Help to Buy property value in London is up to £600,000. The average amount given is almost half: £365,958.
Fairview New Homes has 150 Help To Buy properties still available in London and Essex.
London’s most affordable home developer, Fairview New Homes, has found in a survey of 2,000 first-time buyers across the UK that two in three (72%) first-time buyers in London either do not know, or are incorrect about the deadline to reserve a Help To Buy home. Ending on 31st October, the government-backed scheme has enabled thousands of Londoners to get on the property ladder.
Chris Hood, Sales and Marketing Director for Fairview, explains why many Londoners may be unaware of the impending deadline: “Although we’ve helped 2,700 people purchase their first home with Help To Buy since 2013, it’s concerning that there is little awareness of the scheme among today’s first-time buyers in London that it’s winding down. This may be because the Help to Buy scheme technically ends in March 2023, however the October deadline to reserve a home was only recently announced in May of this year, therefore it’s understandable if many first-time buyers believe they have until next year to find a Help to Buy home.
While 43% of the London respondents believe they know exactly what the scheme is, making them the most confident region in the UK of their understanding of the Help to Buy scheme, it’s particularly alarming that 84% do not know that the minimum deposit requirement is just 5%, as saving for a deposit is particularly challenging with the cost of living in London”.
According to Fairview, only 4% of first-time buyers in London are aware that the maximum value of Help to Buy property in London is £600,000. The average amount respondents gave was almost half of this: £365,958.
Hood continues, “Based on this data, many are unaware that buying a home in London is even possible with the Help to Buy scheme, given the average property price exceeds their estimation. The Help to Buy scheme has been fantastic for Londoners because of the 40% equity support that it offers, helping to improve customer affordability and reduce deposit purchaser deposit requirements. We hope to raise awareness for those that are keen to still utilise the scheme before the October deadline.”
Management Consultant, Busola Ilesanmi bought her first home using the Help to Buy scheme with Fairview in December last year. Thanks to the scheme’s benefits, Busola was able to purchase her £342,000 one-bed apartment at NewHayes in West London, using just £17,100 for her deposit.
Busola said: “After 10 long years of paying so much money towards renting spaces shared with others, it was a relief to finally be able to buy my own home after starting my career and six years of savvy saving.
“The Help to Buy scheme was so important in helping me get enough for my deposit and mortgage. I also always conduct yearly ‘life audit’ to pinpoint where I can make adjustments and help me jump start a new goal; this really kept me on track each year to ensure I was saving enough to get onto the property ladder.”
Busola in her apartment - her deposit would’ve been at least £34,200 without Help to Buy
For more information on the Help To Buy scheme, visit Fairview’s website. Alternatively, you can talk to financial advisors, Torc24, to find out if you are eligible.
Help To Buy: What you need to know
You can buy a new home with a 5% deposit and In London, the Help to Buy scheme provides a 40% equity loan, meaning you need a 55% mortgage with your 5% deposit.
First-time buyers aged 18+.
What type of house can you buy?
A new-build home sold by a registered Help to Buy homebuilder. The house must have reached practical completion by 31 December 2022, which is why there is limited availability of Help to Buy properties remaining across the country. Fairview New Homes currently has 150 Help To Buy Homes remaining in London and Essex: https://www.fairview.co.uk/developments/
Why is the deadline in October of this year, if the scheme ends in March 2023?
The government set the deadline for 6pm on 31 October 2022 to allow time for homebuyers to legally complete their purchase by 31 March 2023.
How do I reserve a Help to Buy home with Fairview?
Once a buyer pays their £500 reservation fee, the price of the home will be fixed. To secure the reservation the buyer needs to provide:
The deposit is payable once the sale has been completed.
How can I find out if I can afford to buy a Help to Buy home?
Fairview has a dedicated Help to Buy information page on its website including a Help to Buy calculator: https://www.fairview.co.uk/buying-with-fairview/ways-to-buy/buying-schemes/
Fairview New Homes Help to Buy note to editors
Fairview New Homes surveyed 2,000 UK adults who have never owned a home in June 2022. Sales and Marketing Director, Chris Hood, has been helping first-time buyers get on the property ladder with Fairview New Homes for almost eight years and is available for interviews on request.
About Fairview New Homes
Fairview New Homes has built homes in and around London for over 60 years. Known for its ability to build good value homes in undiscovered spots of London, Fairview benefits from utilising its own contractors to keep costs down and guarantee a more reliable turnaround from reservation to picking up the keys.
It’s for this reason that Fairview is one of few developers in London and Essex that has a healthy stock of Help to Buy homes available, as it’s able to complete building the homes by the end of December, in line with the scheme’s eligibility requirements.
Fairview has helped almost 2,700 people to buy a home with Help to Buy since it began in 2013. Since the 2021-2023 scheme was introduced in December 2020, which is applicable only to first-time buyers, Fairview has helped 1,100 first-time buyers to onto the property ladder using the scheme.
Current Fairview New Homes developments with Help to Buy available include (as of 14 July 2022):
Regency Heightshttps://www.fairview.co.uk/developments/regency-heights/Park Royal, NW10 7HQ: Less than 15 remaining
Kingston Easthttps://www.fairview.co.uk/developments/kingston-east/New Malden, KT3 3SW: Less than 30 remaining
NewHayeshttps://www.fairview.co.uk/developments/newhayes/Hayes, UB3 3NB: Less than 35 remaining
Nolahttps://www.fairview.co.uk/developments/nola/Shenfield, CM15 8DN: Less than five remaining
Edgwarebury Manorhttps://www.fairview.co.uk/developments/edgwarebury-manor/Edgware, HA8 8JP: Less than 25 remaining
North Sevenhttps://www.fairview.co.uk/developments/north-seven/Islington, N7 0LR: Less than 23 remaining
Brentwood Acreshttps://www.fairview.co.uk/developments/brentwood-acres/Brentwood, CM13 3BW: Less than eight remaining (coming to the website soon)
For information on Fairview New Homes, visit: www.fairview.co.uk