Greater London sucks up £1 billion of Help to Buy cash

“A new breed of “five per centers” is taking over the new homes market in parts of London, according to a study published today.

Using the Government’s subsidised Help to Buy London scheme and a five per cent deposit to get on to the housing ladder, these buyers are now responsible for more than half of all sales of new homes in a “halo” of postcodes around the capital.

These hotspots are led by West Wickham, near Croydon. Some 85 per cent of the new homes sold there over the last two years were to buyers bolstered by a 40 per cent government equity loan.

The average price of a new home in the BR4 postcode stands at just under £421,000, up 14 per cent in the past two years.

Other Help to Buy hotspots identified in the research by Hamptons International include Becontree in Barking & Dagenham, where Help to Buy London has been used in 79 per cent of all new homes sales and prices have risen 27 per cent, and Rainham in Havering, where 71 per cent of new properties were bought under the scheme and prices have grown by 23 per cent.

The vast majority of the top 10 Help to Buy locations are in the outer suburbs, including Edmonton in north London, Erith in the east, Peckham in south London, and Feltham and Southall in west London. …”