Two Years Since Launch, 60% of England Postcodes Have Zero ‘Help to Buy’ Homes

Interactive Map reveals 1,261 out of 2,117 Postcode Districts in England have yet to see any ‘Help to Buy’ mortgage completions – despite more than 400,000 eligible homes being available.

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Two years after George Osborne launched Help to Buy in April 2013, a brand new interactive map from TotallyMoney.com, using housing market data from the HM Treasury, reveals that close to half of all postcode districts in England (1,261 out of 2,117 total) are yet to see any mortgage completions under the Help to Buy scheme – despite there being in excess of 400,000 eligible homes currently available across the UK.

The map highlights all mortgage completions across the UK that were as a result of either the Help to Buy 1 (Equity Loan) or Help to Buy 2 (Mortgage Guarantee) scheme, revealing 1,261 ‘black spots’, where no Help to Buy properties are available or where the scheme simply hasn’t been taken up.

Key findings include:

  • Mortgages on 52,691 Homes in England (as of February 28th, 2015) have completed as a result of Help to Buy so far.
  • 42% of postcode districts in England e.g. NW1 (1261 out of 2117 Total) have yet to see any ‘Help to Buy’ mortgage completions.
  • Leicester is England’s number one Help to Buy city, with 892 completions.
  • MK42, in Bedford, is England’s top Help to Buy postcode, with 309 completions,

Created to mark the two-year anniversary of Help to Buy, the map draws data from both phases of the scheme, recorded since its inception. The TotallyMoney.com resource offers a breakdown to demonstrate uptake of both the equity loan and mortgage guarantee options across the UK. Here’s how the two schemes work:

  • Help to Buy 1 – Equity Loans
    The initial scheme offers first-time buyers easier access to new builds. Help to Buy 1 offers 5-year interest-free Government loans  up to 20% of the property value. Once the 5-year interest-free period is complete, interest is charged at 1.75%, with annual rises of 1% above inflation. First-time buyers using the scheme require a minimum 5% deposit and a mortgage to cover the remaining 65-75% of the property value.
  • Help to Buy 2 – Mortgage Guarantees
    The second phase of the scheme offers mortgage providers more incentive to lend higher loan-to-value mortgages. Access to Government guarantees on these loans allows lenders to give both first-time buyers and existing home owners mortgages with deposits as low as 5% on new builds and older properties.

Created by credit comparison experts TotallyMoney.com, the new interactive heatmap  suggests that Help to Buy’s grand ambitions are yet to be fully realised across the UK. The map also functions as a valuable resource for first-time buyers searching for regions where the schemes are readily available.

Search for specific postcodes to learn more about Help to Buy in any area of the UK and to see the latest facts and figures on:

  • Equity loan completions
  • Mortgage guarantee completions
  • Median property price
  • Number of properties available

 


Data Sources
TotallyMoney.com Help to Buy Maphttp://www.totallymoney.com/help-to-buy-map/

Postcode Districtshttp://www.afd.co.uk/news/datanews.asp

Equity Loan Completions (1 April 13 to 28 February15 – Latest Data Available)  - http://opendatacommunities.org/data/housing-market/help-to-buy/num-loans/loan-type-postcode-dis

Mortgage Guarantee Completions (8 October 13 to 30 June 14 – Latest Data Available) http://opendatacommunities.org/data/housing-market/help-to-buy/num-loans/mortagegaurantees/completed-loans-postcode-dis

Median Property Prices & Number of Properties Available under £500,000 (As of 21 Feb 15) – http://www.home.co.uk

Notes to editors

TotallyMoney.com, launched in 2007, is the UK’s leading credit-focused comparison website which sets out to make it simpler for consumers to compare credit cards, loans and mortgages. With a revolutionary approach to credit comparison, TotallyMoney.com uses exceptional comparison tools to empower people to make better financial choices.

For more information, including an embeddable version of the TotallyMoney.com Help to Buy heatmap please contact Pete Campbell at pcampbell@totallymoney.com 

 

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