Help to Buy flawed by Rising House Prices

First-time buyers are being given more assistance to get onto the property ladder than ever before. But the rise in house prices is meaning that even with all of this new help, it's just not enough. Latest statistics show that 28% of families are now being forced to welcome children back into the family home before they are able to assert their independence.

On the face of it, things look very positive...

• 94,000 people have used the Government's Help to Buy scheme in the UK since 2013. 
• And the Banks and Building Societies are seemingly happy to offer finance to those, even with a low deposit amount, with good rates. 
• 57% of families who currently own a house (rather than rent) apparently intend to assist their children financially with a deposit to buy their own property in the future.

But according to the Independent earlier this year, the average cost of a house in England has now reached £272,000 (a year-on-year increase of 9.8%). This price increase was also reflected exactly in the average cost of the purchases by first-time buyers. The pressure is indeed, well and truly on!

Of course, the housing shortfall is an unhelpful factor for wannabe buyers as demand continues to outstrip supply.

It has been suggested that whilst the government, banks and family institutions will continue to offer as much help as possible, this generational change is here to stay. Our attitude to the Private Renting Sector will become much more accepting as it, quite simply, is a basic requirement for those not wishing to live in the family home, yet have not been able to secure significant purchase funds. Latest data indicates that it may only be the families who are financially secure enough to gift their children a purchase deposit that will maintain the ongoing British nature of outright home ownership – making it a rather elite quality.


Dawson & Associates has helped to advise and inform many first-time buyers and more experienced property investors in the UK property market. With over 40 years of experience, we are aware of many factors that result in market fluctuations and we know which houses are likely to offer long or short term profits.

Most importantly, as RICS Chartered Surveyors, we know what is a good house
...and which houses are more likely to be problematic.

Contact us today for more information. Initial advice is free of charge.