Since its inception, the UK Government’s Help to Buy: ISA scheme has supported the completion of 547,187 property purchases, according to recent data.
The scheme has also paid out 714,878 bonuses, totaling £860m, with an average bonus value of £1,204.
Regional data shows that the North West and Yorkshire and the Humber regions have seen the highest number of property completions through the scheme. In contrast, the North East, Wales, and Northern Ireland have recorded the fewest number of completions.
The average value of a property purchased through the Help to Buy: ISA scheme is £177,217. This is significantly lower than the average first-time buyer house price of £245,958 and the national average house price of £294,329.
The median age of first-time buyers using the scheme is also slightly lower at 28 years, compared to the national first-time buyer median age of 30.
Jamie Lennox, director at Norwich-based mortgage broker Dimora Mortgages, suggested the scheme’s success in the North was due to the £250,000 maximum property price cap. He stated: “It comes as no surprise that the majority of users of the Help to Buy ISA are across the North. The cap rules out the vast majority of the South due to higher house prices that were accelerated even further post-Covid. Many first-time buyers in the South will also likely have looked to transfer their ISA to a Lifetime ISA to benefit from a higher purchase price cap of £450,000.”
Ross Lacey, director at Rayleigh-based Fairview Financial Management, shared that the Help to Buy ISA scheme was effective in aiding first-time buyers onto the property ladder. However, he noted that the Lifetime ISA, which replaced the former scheme, is generally more attractive.
“There are several differences between the two, but one of the biggest is the level of bonus available through each scheme,” Lacey said. “The maximum is £3,000 under the Help to Buy Scheme, which would take five years to get based on the maximum contribution of £200 per month. With the Lifetime ISA, a maximum contribution of £4,000 can be made each year, which would receive a bonus of 25%, i.e., £1000. This can really help aspiring homeowners save a meaningful deposit toward their first property.”
