The latest research from Warwick Estates has looked at the cost of getting a foot on the ladder for new-build homebuyers who utilise the new initiative.
The latest data on new build house prices was analysed and found that utilising the scheme for the average British new-build homebuyer would require a deposit of just £17,135.
In the North East, a 5% deposit would require a savings pot of just £10,653 for the average new-build homebuyer in the region, with Yorkshire and the Humber (£12,130), Scotland (£12,578), Wales (£13,166) and the North West (£13,214) also allowing new-build homebuyers to get a foot on the ladder for less than £15,000.
Even in Britain’s most expensive regions, it would cut the cost required for a new-build deposit considerably.
In London, where a 10% deposit on the average new-build home will currently cost you more than £50,000, the Deposit Unlock scheme will allow homebuyers to purchase with a savings pot of just £26,142.
A 5% new-build deposit will still exceed £20,000 on the average home across the South East (£21,422) and the East of England (£20,634), but again, remains considerably more affordable than the current task of a 10% deposit.
Bethan Griffiths, COO of Warwick Estates, commented: “The Help to Buy scheme has helped thousands of homebuyers realise their dream of homeownership and so it’s great to see the first big lender commit to the Deposit Unlock initiative which should provide the continued support needed by many in order to get a foot on the ladder.
"The ability to purchase a new-build with just a 5% deposit will dramatically reduce the initial financial hurdle when looking to buy by as much as £26,000 in some regions, but regardless of where you’re looking to buy it will be a big help.
"Of course, the only downside to schemes such as Help to Buy is that heightened demand does push up property prices and so it’s likely that by the time the Deposit Unlock initiative does launch, further upward growth will have increased the amount required to cover a 5% deposit when compared to current market values.”
