MAJORITY OF FIRST-TIME BUYERS UNAWARE OF THE HELP TO BUY SCHEME DEADLINE

• 70% of first-time buyers do not know exactly what the Help to Buy scheme is

• Three in four (73%) either don't know, or are incorrect about the deadline to reserve a Help to Buy home (31 October)

• Nine in 10 are unaware that the minimum deposit requirement is 5% with Help to Buy, one of the key benefits for first-time buyers finding it challenging to save

• Fairview New Homes has 150 Help To Buy properties still available in London and Essex
  
  

As the Help to Buy deadline nears, Fairview New Homes, developer of affordable new homes for over 60 years, flags that few first-time buyers have knowledge of the scheme and may miss out without awareness of the 31 October deadline to reserve a home. In Fairview's survey of 2,000 first-time buyers across the UK, three in four (73%) either don't know, or are incorrect about the deadline. 

Fairview has helped 623 first-time buyers in London since December 2020, when the Help to Buy 2021-2023 scheme was introduced, however Chris Hood, Sales and Marketing Director for Fairview, explains why many people may be unaware of the deadline: “The Help to Buy scheme technically ends in March 2023, however the October deadline to reserve a home was only recently announced in May of this year, therefore it's understandable if many first-time buyers believe they have until next year to find a Help to Buy home. The more concerning revelation in our survey however is that 70% of first-time buyers do not know exactly what the Help to Buy scheme is. Clearly, we have an urgent educational task on our hands to ensure no one misses out.”

According to Fairview's survey, nine in 10 (87%) first-time buyers do not know Help to Buy requires just a 5% deposit. In fact, 82% of those who believe they know exactly what the Help to Buy scheme is, do not know the correct deposit amount. The average deposit percentage given by respondents was over 10%.

Hood continues: “80% of Fairview's first-time buyers in the past couple of years have relied on Help to Buy. The 5% deposit, combined with the 20% equity support - or 40% in London – addresses affordability while house price growth has outstripped salaries. While a 5% deposit is still challenging to save for many people, particularly in London where the average rental cost is now £2,193 per month, it's far more achievable than a £53K 10% deposit on the average house price with a standard mortgage.”

Management Consultant, Busola Ilesanmi bought her first home using the Help to Buy scheme with Fairview in December last year. Thanks to the scheme's benefits, Busola was able to purchase her £342,000 one-bed apartment at NewHayes in West London, using just £17,100 for her deposit.

Busola said: “After 10 long years of paying so much money towards renting spaces shared with others, it was a relief to finally be able to buy my own home after starting my career and six years of savvy saving.

“The Help to Buy scheme was so important in helping me get enough for my deposit and mortgage. I also always conduct yearly 'life audit' to pinpoint where I can make adjustments and help me jump start a new goal; this really kept me on track each year to ensure I was saving enough to get onto the property ladder.”

Help To Buy: What you need to know

You can buy a new home with a 5% deposit, and a 75% mortgage, thanks to the Government providing you with a 20% equity loan. There is no interest to pay on this loan for the first five years. In London, the Help to Buy scheme provides a 40% equity loan, meaning you need a 55% mortgage with your 5% deposit.

Who's Eligible?

First-time buyers aged 18+.

What type of house can you buy?

A new-build home sold by a registered Help to Buy homebuilder. The house must have reached Practical Completion by 31 December 2022, which is why there is limited availability of Help to Buy properties remaining across the country. Fairview New Homes currently has 150 Help To Buy Homes remaining in London and Essex: https://www.fairview.co.uk/developments/

Why is the deadline in October of this year, if the scheme ends in March 2023?

The government set the deadline for 6pm on 31 October 2022 to allow time for homebuyers to legally complete their purchase by 31 March 2023.

How do I reserve a Help to Buy home with Fairview?

Once a buyer pays their £500 reservation fee, the price of the home will be fixed. To secure the reservation the buyer needs to provide:

• Anti Money Laundering (AML) documents (passport/driving licence/utility bill)

• Proof of income

• Proof of deposit funds

The deposit is payable once the sale has been completed.

How can I find out if I can afford to buy a Help to Buy home?

Fairview has a dedicated Help to Buy information page on its website including a Help to Buy calculator: https://www.fairview.co.uk/buying-with-fairview/ways-to-buy/buying-schemes/

ENDS

Notes to Editors:

Fairview New Homes surveyed 2,000 UK adults who have never owned a home in June 2022. Sales and Marketing Director, Chris Hood, has been helping first-time buyers get on the property ladder with Fairview New Homes for almost eight years and is available for interviews on request.

Data samples from other regions of the country available on request.

For further press information, please contact:
Yasmine Triana / Arabella Halfhide / Dylan Smart / Olivia Hazelden-Kingdon / Dzifa Ahorlu
Rooster PR
T: +44 (0)20 3440 8934
E: Fairview@rooster.co.uk

About Fairview New Homes

Fairview New Homes has built homes in and around London for over 60 years. Known for its ability to build good value homes in undiscovered spots of London, Fairview benefits from utilising its own contractors to keep costs down and guarantee a more reliable turnaround from reservation to picking up the keys.

It's for this reason that Fairview is one of few developers in London and Essex that has a healthy stock of Help to Buy homes available, as it's able to complete building the homes by the end of December, in line with the scheme's eligibility requirements.

Fairview has helped almost 2,700 people to buy a home with Help to Buy since it began in 2013. Since the 2021-2023 scheme was introduced in December 2020, which is applicable only to first-time buyers, Fairview has helped 1,100 first-time buyers to onto the property ladder using the scheme.

Current Fairview New Homes developments with Help to Buy available include (as of 14 July 2022):

Regency Heights
Park Royal, NW10 7HQ: Less than 15 remaining
https://www.fairview.co.uk/developments/regency-heights/

Kingston East
New Malden, KT3 3SW: Less than 30 remaining
https://www.fairview.co.uk/developments/kingston-east/

NewHayes
Hayes, UB3 3NB: Less than 35 remaining
https://www.fairview.co.uk/developments/newhayes/

Nola
Shenfield, CM15 8DN: Less than five remaining
https://www.fairview.co.uk/developments/nola/

Edgwarebury Manor
Edgware, HA8 8JP: Less than 25 remaining
https://www.fairview.co.uk/developments/edgwarebury-manor/

North Seven
Islington, N7 0LR: Less than 23 remaining
https://www.fairview.co.uk/developments/north-seven/

Brentwood Acres
Brentwood, CM13 3BW: Less than eight remaining (coming to the website soon)
https://www.fairview.co.uk/developments/brentwood-acres/

For information on Fairview New Homes, visit: www.fairview.co.uk 

Facebook: www.facebook.com/FairviewNewHomes 

Instagram: www.instagram.com/fairviewnewhomes