Deposit requirements have been slashed under the governments Help to Buy 2(second phase). According a leading property website people buying homes can make a deposit of just £10,000 and get on the property ladder in six out of 10 regions across England and Wales.

The research also highlights that even in certain areas of London people do not need any more than just over £16,000 for the deposit which amounts to approximately 5% of a property worth £322,000.

 

With phase 2 of the initiative deposit requirements have been reduced by an average of £33,325 across England and Wales, the average deposit is now £11,108.

It was reported in the research that there are 665,000 properties on the market that can be included within the scheme and the average asking price for a property is £222,168.

In the South East region under Help to Buy the average deposit is £13,245 which is 5% of the property price of £264,905.

Buyers can start on the property ladder for under £10,000. West Midlands is £9,568, Wales £9400, East Midlands £9,340, North West £8,903 and the North East is £8,876.

The lowest price throughout England and Wales is in Yorkshire and Humberside where for a property worth £162,588 it is possible to lay down just £8,129 as a deposit.  

 

Overall the 15% cut back on the deposit across the country means that the average saving is £33,325 which rises to £48,309 in London.

The property website calculates that that there will be a whopping £22.1 billion cut for deposits and will get many thousands of people to become homeowners.

 

Lawrence Hall of the website 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 the housing market a place for the many, not the few.”

P.I.M.S.co.uk is not  concerned by the Help to Buy scheme, more and more people are still looking to rent and the workforce has to consider moving areas, if not regions, to remain in employment and in most cases will rent at first in a new area if they have to relocate.

Richard Merrick said: “Within the workforce of £35 million over £11 million people receive tax and child credits and a good percentage will be on low income and can only rent. We have every reason to be confident of the private property rental market.”