According to research by GetAgent.co.uk, buyers who have taken advantage of the Help to Buy ISA scheme since in launched in 2015 should now have the cash to buy a house in 71.5% of UK, based on the current first-time buyer house price.
GetAgent.co.uk looked at the current deposit saved for those that took advantage of the ISA when it first launched and where across the UK they can buy using this as both a 5% and 10% mortgage deposit.
Launched in December 2015, the ISA allows an initial maximum start-up cost of £1,200 and boosts any further deposits by 25% capped at £200 a month, with the Government paying in £50 for every £200 deposited. This bonus is capped at £3,000 meaning buyers have to tuck away £12,000 to make the most of it.
A first time buyer who opened a H2B ISA when it was launched back in December 2015 should currently have a savings pot of £10,600, with the Government pitching in a further £2,650, a total of £13,250 over the last 47 months.
If a saver holds out a further seven months to reach the maximum amount allowed, they will have a saving pot of £12,000 and a further £3,000 from the Government – a total of £15,000 for a deposit.
With a cash pot of £13,250 and based on using this sum as a 5% deposit on a mortgage (one of the most common for first-time buyers), the Help to Buy ISA can stretch to a starter home in 71.5% of UK area.
If a H2B ISA for a 10% mortgage deposit is used, a first time buyer could afford a property in 14.6% of UK areas based on the current first-time buyer house price.
Based on the current average first-time buyer property price, a first time buyer could bag a property in all regions of the UK with a H2B ISA of £13,250 as a 5% mortgage deposit, with the exception of London.
However, when it comes to a 10% deposit, just the North East would see First Time Buyers qualify with £13,250 accounting for 12% of the current average property cost.
Founder and CEO of GetAgent.co.uk, Colby Short, said: “Help to Buy in its various forms certainly has its critics and while the original Help to Buy scheme has no doubt pushed up prices by fuelling demand without the additional supply, the ISA has at the least, spurred more people to save with one eye on climbing the ladder in the future.
“Unfortunately, this only goes a small way in bridging the huge affordability gap that keeps many priced out of the market and as a result, many are turning to much higher rates of loan to value in order to take their first step.”
| Total Help to Buy ISA saving to date if taken out upon launch in December 2015 = £13,250 | ||||
| 1. Table shows the average cost of buying for a FTB by region, the 5% & 10% deposits required, as well as the current H2B ISA saving of £13,250 as a mortgage deposit percentage of average house price. | ||||
| Location | Ave FTB house price | Deposit (5%) | Deposit (10%) | ISA as a % mortgage deposit |
| North East | £110,301 | £5,515 | £11,030 | 12.0% |
| North West | £137,869 | £6,893 | £13,787 | 9.6% |
| Yorkshire and the Humber | £139,284 | £6,964 | £13,928 | 9.5% |
| East Midlands | £162,046 | £8,102 | £16,205 | 8.2% |
| West Midlands | £160,412 | £8,021 | £16,041 | 8.3% |
| East of England | £241,700 | £12,085 | £24,170 | 5.5% |
| London | £410,056 | £20,503 | £41,006 | 3.2% |
| South East | £257,147 | £12,857 | £25,715 | 5.2% |
| South West | £210,461 | £10,523 | £21,046 | 6.3% |
| England | £206,336 | £10,317 | £20,634 | 6.4% |
| Wales | £140,046 | £7,002 | £14,005 | 9.5% |
| Scotland | £122,503 | £6,125 | £12,250 | 10.8% |
| Great Britain | £193,549 | £9,677 | £19,355 | 6.8% |
| 2. Table shows the areas where the current H2B ISA saving of £13,250 can buy you the most expensive property based on its use as a 5% mortgage deposit on the current FTB house prices. | ||||
| Location | Ave FTB house price | Deposit (5%) | ISA as a % mortgage deposit | |
| Reading | £264,082 | £13,204 | 5.0% | |
| East Dorset | £264,042 | £13,202 | 5.0% | |
| Basildon | £260,592 | £13,030 | 5.1% | |
| Aylesbury Vale | £259,535 | £12,977 | 5.1% | |
| South Northamptonshire | £258,766 | £12,938 | 5.1% | |
| Maldon | £258,294 | £12,915 | 5.1% | |
| Purbeck | £257,333 | £12,867 | 5.1% | |
| Lewes | £256,895 | £12,845 | 5.2% | |
| Test Valley | £254,500 | £12,725 | 5.2% | |
| Castle Point | £254,282 | £12,714 | 5.2% | |
| West Sussex | £253,870 | £12,693 | 5.2% | |
| Crawley | £253,768 | £12,688 | 5.2% | |
| Warwick | £253,463 | £12,673 | 5.2% | |
| City of Bristol | £253,167 | £12,658 | 5.2% | |
| Stratford-on-Avon | £251,044 | £12,552 | 5.3% | |
| 3. Table shows the areas where the current H2B ISA saving of £13,250 can buy you the most expensive property based on its use as a 10% mortgage deposit on the current FTB house prices. | ||||
| Location | Ave FTB house price | Deposit (10%) | ISA as a % mortgage deposit | |
| Orkney Islands | £132,420 | £13,242 | 10.0% | |
| City of Nottingham | £132,070 | £13,207 | 10.0% | |
| West Lothian | £131,741 | £13,174 | 10.1% | |
| Wakefield | £131,467 | £13,147 | 10.1% | |
| Bassetlaw | £130,652 | £13,065 | 10.1% | |
| Cumbria | £130,203 | £13,020 | 10.2% | |
| Allerdale | £129,332 | £12,933 | 10.2% | |
| Carmarthenshire | £129,139 | £12,914 | 10.3% | |
| Moray | £128,121 | £12,812 | 10.3% | |
| Kirklees | £127,873 | £12,787 | 10.4% | |
| City of Aberdeen | £126,388 | £12,639 | 10.5% | |
| Wyre | £126,330 | £12,633 | 10.5% | |
| Ashfield | £126,199 | £12,620 | 10.5% | |
| Torfaen | £126,103 | £12,610 | 10.5% | |
| South Yorkshire | £125,431 | £12,543 | 10.6% | |
| 3. Table shows the most affordable areas based on current FTB house price where the current H2B ISA saving of £13,250 would account for the largest mortgage deposit %. | ||||
| Location | Ave FTB house price | Deposit (5%) | Deposit (10%) | ISA as a % mortgage deposit |
| Burnley | £75,929 | £3,796 | £7,593 | 17.45% |
| East Ayrshire | £77,564 | £3,878 | £7,756 | 17.08% |
| Inverclyde | £84,653 | £4,233 | £8,465 | 15.65% |
| Hyndburn | £86,030 | £4,302 | £8,603 | 15.40% |
| Pendle | £86,508 | £4,325 | £8,651 | 15.32% |
| Blaenau Gwent | £87,589 | £4,379 | £8,759 | 15.13% |
| North Ayrshire | £88,571 | £4,429 | £8,857 | 14.96% |
| North Lanarkshire | £89,073 | £4,454 | £8,907 | 14.88% |
| County Durham | £89,422 | £4,471 | £8,942 | 14.82% |
| West Dunbartonshire | £91,367 | £4,568 | £9,137 | 14.50% |
| Hartlepool | £91,446 | £4,572 | £9,145 | 14.49% |
| Merthyr Tydfil | £92,675 | £4,634 | £9,267 | 14.30% |
| Blackpool | £93,631 | £4,682 | £9,363 | 14.15% |
| Middlesbrough | £96,218 | £4,811 | £9,622 | 13.77% |
| Western Isles | £98,457 | £4,923 | £9,846 | 13.46% |
