According to the figures, the most popular area for properties purchased through the Help to Buy ISA scheme (by value) is Walthamstow, with nearby West Ham in fifth. South London accounts for six of the Top Ten areas out 650 areas in the UK for purchases through the Help to Buy ISA scheme.
£212.4m worth of property has been purchased through the scheme in Walthamstow, which is near the Olympic Park. Lewisham is in second place with £211.1m of residential property. The South London corridor of Central and North Croydon came sixth and seventh in the league table (see table below).
The most popular Help to Buy areas in the UK by value of properties purchased:
Help-to-buy ISAs were introduced to give first-time buyers the opportunity to save up for a home of their own. First-time buyers received a 25% bonus from the government on savings of up to £12,000, allowing them potentially earn a maximum tax-free bonus of £3,000. The programme has just closed to new applicants and will be replaced by the Lifetime ISA.
Stephen Ludlow, Chairman at ludlowthompson says that these reinvigorated and regenerated parts of South East London are becoming increasingly popular amongst first time-buyers and young professionals renting.
Stephen explains: “Saying that Croydon is the new Shoreditch no longer gets you labelled as an eccentric. The arrival of BoxPark and artisan street food markets in Croydon, Lewisham and Tooting are just the latest leg in their movement upmarket.
Shrewd property investors identified Peckham’s potential over decade ago. Now its areas like Croydon and Lewisham that are the rapidly gentrifying parts of London with increasing numbers of independent bars, art studios and foodie haunts.
These are the areas that young people want to buy in. Much of Clapham, Brixton and other traditional first-time buyer areas are less affordable now.”
The popularity of South and East London areas for users of the Help to Buy ISA scheme has partly been helped by programmes to regenerate those previously overlooked parts of London. Major transport improvements and private sector investment have helped those areas become more appealing as places to live.
Walthamstow has received significant investment, with £200m dedicated to regenerate its town centre. South London has also seen major infrastructure investments such as the extension of the DLR to Lewisham in 1999.
Stephen adds: “Help to Buy has been instrumental in helping many first-time buyers to get on the property market. Now that it’s ended, first-time buyers will need to consider alternative financing options, such as the Lifetime ISA.”
