Three in four (73%)first-time buyers either don’t know or are incorrect about the deadline to reserve a Help to Buy home (31st October), according to analysis from Fairview New Homes.
Fairview surveyed 2,000 first-time buyers and found that 70% of first-time buyers do not even know exactly what the Help to Buy scheme is.
Nine in 10 are unaware that the minimum deposit requirement is 5% with Help to Buy, one of the key benefits for first-time buyers finding it challenging to save.
Chris Hood, sales and marketing director for Fairview, explained why many people may be unaware of the deadline: “The Help to Buy scheme technically ends in March 2023, however the October deadline to reserve a home was only recently announced in May of this year, therefore it’s understandable if many first-time buyers believe they have until next year to find a Help to Buy home.
“The more concerning revelation in our survey however is that 70% of first-time buyers do not know exactly what the Help to Buy scheme is.
“Clearly, we have an urgent educational task on our hands to ensure no one misses out.”
Fairview also found that 82% of those who believe they know exactly what the Help to Buy scheme is, do not know the correct deposit amount. The average deposit percentage given by respondents was over 10%.
Hood continued: “80% of Fairview’s first-time buyers in the past couple of years have relied on Help to Buy.
“The 5% deposit, combined with the 20% equity support – or 40% in London – addresses affordability while house price growth has outstripped salaries.
“While a 5% deposit is still challenging to save for many people, particularly in London where the average rental cost is now £2,193 per month, it’s far more achievable than a £53K 10% deposit on the average house price with a standard mortgage.”
