Up to 665,000 homebuyers in five English regions and Wales could be able to buy a property with a deposit of less than £10,000, as a result of the mortgage guarantee part the government’s Help To Buy scheme.
On average, a 5% deposit in Yorkshire & Humber would be the cheapest anywhere in England at £8,129, based on a property selling for the region's current average asking price of £162,588, according to property website Zoopla.
In comparison, a 20% deposit (what many borrowers have had to put down to secure themselves a decent mortgage rate prior to the introduction of Help to Buy 2) would have cost them £32,518 in the Yorkshire & Humber region - £24,388 more than a 5% deposit costs.
The next cheapest 5% deposit would be in the North East, at £8,876 on average, followed by £8,903 in the North West.
Unsurprisingly, buyers in London would still have to fork out the most for a 5% deposit at £16,103 - almost twice the size of the average deposit required in Yorkshire & Humber. But had those London buyers had to put down a 20% deposit, they would have had to fork out an additional £48,309.
Zoopla.co.uk spokesperson Lawrence Hall said: "Help to Buy 2 won't just narrow the aspiration gap, it could help close it entirely. House prices are beginning to rise, savings rates are low, inflation is consistently above target and wage increases aren't keeping pace. It makes saving for a 20% deposit on a property very difficult for many.
"Even people with well-paid jobs are being priced out of the market. The new scheme helps address that problem, making the first rung of the ladder much lower for would-be buyers who want to get a foot on it. People everywhere need help. Help to Buy can make housing market a place for the many, not the few."
|The effect of Help to Buy 2 on home deposit savings by region|
|Region||Avg. asking price (up to £600k)||Avg. desposit saved under Help to Buy 2 (15%)||Avg. deposit required under Help to Buy 2 (5%)|
|South East England||£264,905||£39,736||£13,245|
|East of England||£241,747||£36,262||£13,087|
|South West England||£234,891||£35,234||£11,745|
|North West England||£178,052||£26,708||£8,903|
|North East England||£177,512||£26,627||£8,876|
|Yorkshire & The Humber||£162,588||£24,388||£8,129|
|Source: Zoopla.co.uk (October 2013)|