Despite the considerable ‘hoorah’ around the new Help to Buy scheme implemented by the government, a recent study carried out by the BBC has shown that the average price of a starter home exceeds the maximum purchase cap of £250,000 (or £450,000 in London).
The Help to Buy ISA was introduced last December, and comes with the promise of a 25% bonus (up to £3000) for first-time buyers who use the scheme.
The catch (that has proven a stumbling block for many) is the purchase cap. As the BBC found, 28% of two-bedroom homes outside of London exceed the £250,000 cap.
In a market that has become increasingly difficult to enter the concept of these schemes certainly lent hope for many, but how successful are they really proving?
Tune in from 12pm to Money Talk on Channel Radio this Friday the 1st of July.