Due to the layout of the Help to Buy scheme, its influence on London’s house prices has been noticeable, new research explains.
Buyers who use the scheme to help them afford a house can purchase property for up to £600,000, which means there is an awful lot of demand for houses just under that threshold across the city.
Research compiled by James Pendleton has now revealed that 83% of newly built properties sold for prices between £575,000 and £625,000 across seven of London’s boroughs have sold for just under £600,000.
It also found that 380 properties (the report overall focused on Battersea, Putney, Tooting, Balham, Wandsworth, Clapham and Brixton) were sold for anything between £575,000 and £600,000 over the last 12 months. Only 183 properties were sold for a prices between £600,001 and £625,000.
The Help to Buy scheme allows the Government to lend up to 20% (or 40% if you’re looking in the capital) to buyers so they can afford a deposit. All they need to do is purchase a new-build home.
The scheme doesn’t include any regulations when it comes to the size of a home, which led to developers buildings especially well-sized properties for just under £600,000.