Sellhousefast.uk, took a sample of a number of these cities to analyse just exactly how many first time buyers were securing a property with the help of an ISA bonus.
Results highlighted the difficulty of purchasing a property. Among the cities, the Help to Buy scheme proved most popular in locations such as: Bristol (405), Birmingham (594) and Leeds (850). The average house prices in these cities, were significantly lower than the £250,000 Help to Buy ISA limit outside of London.
Contrastingly in Oxford, less than 1% of those were able to take advantage of the scheme than those in Leeds, despite the median population being under the average age in England.
Similarly, the cities with the least ISA bonuses paid were in Cambridge (11) and Winchester (29). The average house price of these cities are populated with those living more affluently, with house prices in Oxford averaging at £411,000. This could limit the availability of houses available to those looking to use the scheme.
However, it does seem that new rules regarding the scheme may need to be initiated in order for more first time buyers to take advantage in areas where the average house costs more than £250,000. This has been actioned in London, where the limit of the Help to Buy ISA reaches £450,000; however again in London the average house price is well over, at £641,298.
Robby Du Toit at Sellhousefast.uk responded to this quoting: “It is a competitive housing market, and with house prices booming in the last few years, it has never been more difficult to be a first time buyer. Whilst the Help to Buy Scheme has enabled people in places such as Leeds and Birmingham, it is clear the government should reassess the scheme, to benefit everyone, before people can no longer apply in December 2019”.
