One bonus, among many, of working in the financial services sector is that you are fairly ‘au fait’ with important financial matters, such as pensions, protection, savings, etc.
So I was absolutely flabbergasted when I received some data recently that revealed 22 per cent of 1,000 people, nationally, have not heard of Help to Buy.
I have written dozens of stories about Help to Buy - both positive and negative - and I have discussed the scheme outside of work with friends and family.
How could someone not have heard of this scheme?
According to the data, from removals company Bishop’s Move, 25 per cent of homeowners and current buyers in the north east said they had not heard of the scheme compared with just 7 per cent in Yorkshire and 6 per cent in the Midlands.
According to the data, a further 28 per cent in the south west and 26 per cent in Yorkshire also admitted to “hearing about the scheme but not realising what it was”.
Nationally, the data revealed just 3 per cent said they were “fully aware of Help to Buy’s benefits and have used or knew someone that has used the scheme” while 52 per cent said they were “aware that it was helping first-time buyers onto the property ladder”.
I wonder if this is partially due to property being so much cheaper to buy in the north east than in London.
Many first-time buyers in London, myself included, will be relying on schemes like this to get on the property ladder and even then, for a 5 per cent deposit, at least £20,000 up front will be needed.
However, HM Treasury figures have painted a somewhat different picture.
In the first six months of the scheme, which was launched in October 2013, more than 7,000 mortgages were completed with the support of the scheme.
Of these 80 per cent were purchased by first-time buyers with a much higher proportion in the north-west and the south-east.
According to HM Treasury, just 5 per cent of purchases using Help to Buy II, allow prospective home owners to buy a new-build or existing home priced up to £600,000 with only a 5 per cent deposit, by offering guarantees over a portion of any potential losses for lenders, were located in London.
Around 14 per cent were located in the north west, 14 per cent in the south east followed by 9 per cent in the East Midlands, Yorkshire and Humberside and the east.
Chris Marshall, sales and marketing director at Bishop’s Move, said: “Help to Buy has certainly been making the headlines for some time there are yet pockets of home owners and property buyers across the UK that remain completely unaware of the scheme.
“In areas such as the north east, where the property market is somewhat stagnate, it is a worrying statistic that over a quarter of those surveyed haven’t even heard of Help to Buy.
“In order to improve local economies through the housing market, more needs to be done from a regional perspective to ensure people are fully aware of the many benefits Help to Buy can bring.”
There has been much speculation as to whether Help to Buy is causing a housing bubble, with even the European Commission warning chancellor George Osborne that the scheme needs to be reined it.
While there is no doubt that house prices are increasing, is it really Help to Buy’s fault?
If it is, Help to Buy is both my friend and foe, as I need it to access the first rung of the property ladder but if it is pushing up house prices, will I ever save for a deposit?
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