New research has found that the average deposit needed to purchase a new home under the Help to Buy scheme has dropped by around 75 per cent.
The study by Zoopla says that people now typically need around £11,000 in order to buy a property – before the scheme the figure was around the £44,000 mark.
Under the scheme, people will be able to get on the property ladder with as little as a five per cent deposit on homes valued at £600,000 and under – with a further 15 per cent guaranteed by the government in order to secure cheaper deals.
The second phase of the initiative gets underway today (October 7th), after David Cameron brought the start date forward in a speech at the Conservative Party conference.
It is hoped that Help to Buy will address an imbalance in rising house prices and diminishing rates of savings.
Zoopla director Lawrence Hall said: “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.”