Nearly half of England will be Help to Buy 'no go zones' in 2017
First-time buyers hoping to use their Help to Buy Isa may find they’re unable to do so, as nearly half (46%) of England will cost more than the eligible thresholds by 2017.
The idea behind Help to Buy Isas is to help people save a deposit to buy their first home. The government will contribute £1 towards your deposit for each £4 you save, up to a maximum contribution of £3,000 on savings of £12,000.
They can be used to buy homes costing no more than £250,000, or £450,000 if you’re buying in London.
But online estate agent eMoov, says that 46% of England will be unobtainable for those looking to get on the ladder with the Help to Buy Isa by Spring 2017.
Its analysis found that when the Help to Buy Isa was introduced on 1 December 2015, 101 of 326 districts in England were Help to Buy no-go zones due to the average house price exceeding the Isa threshold (17 London boroughs and 84 districts across the rest of England).
But in the eight months from December 2015 to July 2016, the average house price in a further 28 areas has since exceeded the thresholds (26 outside of London and two London boroughs).
Plus, assuming a similar rate of price growth, eMoov highlights that a further 21 districts across England (16 outside of London and five inside London) could become beyond the grasp of the country’s struggling aspirational homeowners by March 2017.
See the table below for the full details.
Homes outside England are more affordable
In Northern Ireland, Scotland and Wales, eMoov found that average house prices across the entirety of both countries remains within the Help to Buy threshold of £250,000 and should continue to do so until at least March 2017.
Founder and CEO of eMoov.co.uk, Russell Quirk, says: “Across England there are still plenty of areas available below £250,000. However, if you do need help to get on the ladder but would prefer to choose where you live rather than have it dictated by the government, the only option is to look further north or across borders to Wales and Scotland.”
Click on the tables below to enlarge:
Invidivual Savings Accounts were introduced on 6 April 1999 to replace personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs) with one plan that covered both stockmarket and savings products, the returns from which are tax-exempt. The ISA is not in itself an investment product. Rather, it’s a tax-free “wrapper” in which you place investments and savings up to a specified annual allowance where the returns (capital growth, dividends, interest) are tax-exempt (you don’t have to declare ISAs and their contents on your tax return). However, any dividends are taxed within the investment, and that can’t be reclaimed.
Everything you own: all your assets (property, cars, investments, savings, insurance payouts, artwork, furniture etc) minus any liabilities (debts, current bills, payments still owed on assets like cars and houses, credit card balances and other outstanding loans). When you’re alive this is called your wealth; when you’re dead, it becomes your estate.