Government’s Help To Buy scheme is available to top-earners too


The government’s Help To Buy scheme has aided thousands of property purchases since it was launched in April 2013, but it’s not solely for struggling first-time buyers…

While Help To Buy has given 128,317 first-time buyers a helping hand onto the property ladder through equity loans, new data has emerged from the Office for National Statistics (ONS) revealing that as many as one in 10, or 15,737, Help To Buy homes has been sold to those with a household income exceeding £80,000. And surprisingly, a further 6,211 purchases were made by those earning more than £100,000 a year.

Although the average income of a household using the scheme is £44,068 according to the ONS, a remarkable number of people taking advantage of the offerings are higher earners, with 16% (24,791) properties being bought by those earning between £60,001 and £80,000.

How Help To Buy works

There are a number of schemes available under the government’s Help To Buy initiative, including an ISA for first-time buyers, a shared ownership option and equity loans for new-build purchases. The ONS data above focuses specifically on buyers who have received an equity loan to purchase a new-build home, which is not means tested and available to anyone buying a brand new property.

With an equity loan, the government will lend you up to 20% of the value of the property, meaning the buyer only needs a 5% deposit, with a mortgage covering the other 75%. The loan is free for the first five years after the purchase, and can be paid off on the sale of the property.

Is it worth it?

There are numerous benefits to investing in a new-build property, but they do tend to be more expensive than existing homes. According to Land Registry figures, the average price paid for a new-build in March was £302,522, while for existing properties it was £237,206.

While first-time buyers on average spent £201,635 on their new homes, the average paid by first-timers using Help To Buy was much higher, at £249,950.

Although some purchasers may not be able to get onto the ladder without the extra help from the government towards their purchase, there are a number of new 95% loan to value (LTV) products coming onto the market aimed at those with smaller deposits, and it could work out financially better for some to choose an existing property with a 95% mortgage as opposed to paying the extra price for a new-build with an equity loan. However, it is up to the individual buyer which option will work out better for them in the long run, and whether they would still rather opt for the perks that come with investing in a new-build.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Government’s Help To Buy scheme is available to top-earners too

Government’s Help To Buy scheme is available to top-earners too


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.