Supply of eligible Help to Buy homes falls 7.4% in a year
5th March 2015
- But average price of property eligible for Help to Buy rises 5.5% in twelve months
- Available stock drops by a quarter in Stockport, as first-time buyers in the north feel the brunt of squeezed supply on the market
The number of properties on the market eligible for the government’s Help to Buy scheme has fallen 7.4% in the last year, according to property website Zoopla.co.uk.
The analysis of properties for sale in England and Wales up to a value of £600,000 also shows that the average price of properties for sale that qualify for Help to Buy has risen 5.5% since March 2014.
The biggest fall in properties eligible for Help to Buy in the past year has been in the East of England, with a 12.3% reduction in suitable stock on the market, while average prices have climbed 6.1% over the same period. In London, the typical value of a property qualifying for Help to Buy has risen by 11.7% since March 2014.
Stockport has witnessed the sharpest decline in properties eligible for Help to Buy, with available stock dropping 24.3% from a year ago. Compared to March 2014, there are now 16.9% fewer properties on the market in Rochdale that meet the scheme’s criteria, and 15.6% less in Huddersfield.
Further south, the number of properties for sale in Worcester, Cheltenham and Exeter that qualify for Help to Buy support has increased 5.4%, 3.3%, and 3.2% respectively in the past twelve months.
Of all London boroughs, Southwark, Lambeth, Waltham Forest and Newham have seen the greatest annual rise in supply of homes up to £600,000, increasing by over 15%.
Lawrence Hall of Zoopla.co.uk commented: “The Help to Buy scheme was intended as a leg up for flailing first-time buyers, but in some areas that footrest has since been pulled from under their feet. Greater demand hasn’t been met by greater supply of homes on the market, and instead the soaring price growth of the past year appears to have airlifted many properties out of the starter home zone. The pool of homes on the market within reach of Help to Buy assistance needs to expand, or this pinch on supply will continue to inflate prices at the bottom rungs of the ladder.”
Help to Buy eligible properties for sale by region
| Region | % Change in Stock Levels (Mar 14 to Mar 15) | % Change in Av. Property Value (Properties up to £600,000) |
|---|---|---|
| East of England | -12.3% | 6.1% |
| South East England | -9.9% | 6.8% |
| Yorkshire and The Humber | -8.9% | 0.7% |
| East Midlands | -8.6% | 5.0% |
| North West England | -7.2% | 1.3% |
| North East England | -7.2% | 2.2% |
| West Midlands | -6.6% | 4.5% |
| London | -4.7% | 11.7% |
| South West England | -4.6% | 4.5% |
| Wales | -0.8% | 0.6% |
Source: Zoopla.co.uk (March 2015)
Locations with the biggest fall in Help to Buy eligible properties for sale
| Location | % Change in Stock Levels (Mar 14 to Mar 15) | % Change in Av. Property Value (Properties up to £600,000) |
|---|---|---|
| Stockport | -24.3% | 1.4% |
| Rochdale | -16.9% | 5.2% |
| Huddersfield | -15.6% | -1.9% |
| Leeds | -14.7% | 0.0% |
| York | -13.5% | 5.2% |
| Blackpool | -13.4% | -1.0% |
| Manchester | -13.4% | 2.7% |
| Ipswich | -13.0% | -1.9% |
| Hull | -13.0% | 1.0% |
| Sheffield | -12.9% | 0.0% |
Source: Zoopla.co.uk (March 2015)
Locations with the biggest rise in Help to Buy eligible properties for sale
| Location | % Change in Stock Levels (Mar 14 to Mar 15) | % Change in Av. Property Value (Properties up to £600,000) |
|---|---|---|
| Worcester | 5.4% | 7.0% |
| Cheltenham | 3.3% | 7.5% |
| Exeter | 3.2% | 5.0% |
| Portsmouth | 1.9% | 0.4% |
| Plymouth | 1.4% | 5.0% |
Source: Zoopla.co.uk (March 2015)
Top five London Boroughs with the biggest rise in Help to Buy eligible properties for sale
| London Borough | % Change in Stock Levels (Mar 14 to Mar 15) | % Change in Av. Property Value (Properties up to £600,000) |
|---|---|---|
| Southwark | 18.6% | 16.1% |
| Lambeth | 16.3% | 7.7% |
| Waltham Forest | 15.4% | 16.6% |
| Newham | 15.2% | 22.5% |
| Tower Hamlets | 10.4% | 9.5% |
Source: Zoopla.co.uk (March 2015)
- Ends -
For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.
About Zoopla
Hello. We're Zoopla. A property website and app.
We know you're not just looking for a place to live. You're looking for a home.
Yeah, we've got over a million properties for you to browse.
Tools that let you filter them in all kinds of clever ways.
And reliable house price estimates, so you can be sure you aren't paying over the odds.
But we know you're looking for more than that.
Because that first flat won't just be a 'great investment opportunity'.
It'll be the feeling of starting out on your own.
That extra bedroom won't just mean another £20K on the re-sale price, it'll mean having your sister over to stay.
And that bungalow won't just be a way to release some equity, it will be a chance to spend more time with the grandkids.
We know that searching for a home is about more than just checking its price, location and features (important as all those things are).
What really matters is how it makes you feel.
We know what a home is really worth.
So let us help you find yours.
Zoopla is part of Zoopla Limited which was founded in 2007.
Zoopla Limited, The Cooperage, 5 Copper Row, London, SE1 2LH
Registered in England and Wales with Company No. 06074771
VAT Registration number: 191 2231 33
Data Protection number: Z9972266