Buying schemes designed to help homebuyers onto the ladder remain in high demand across England but available properties are scarce, research from Yopa reveals.
Analysis of for-sale stock shows just 2.3% of homes listed nationwide are available through schemes such as Shared Ownership, First Homes, and deposit assistance programmes like Deposit Unlock.
Even in the South East – the region with the highest availability – such properties account for only 3.4% of listings.
Despite limited stock, demand is strong. Across England, 30.6% of buying scheme homes are already sold subject to contract. The West Midlands leads the way with 41.6% of properties snapped up, followed by the North West (40.4%), North East (37.8%), and East Midlands (37.3%).
SUPPLY MISMATCH
Yopa’s data highlights a mismatch between supply and first-time buyer demand. Over a year, an estimated 46,903 buying scheme homes are expected to come to market, compared with 261,859 first-time buyers, meaning only 17.9% could potentially access such opportunities.
Regional differences exist: the East of England offers enough scheme properties for 48.1% of first-time buyers, while the South East and South West account for 26.5% and 22.3% respectively.
STRONG DEMAND
Verona Frankish (main picture, inset), CEO of Yopa, says: “Year after year, we continue to see strong demand for homes sold via buying schemes, particularly among first-time buyers who would otherwise struggle to take that crucial first step onto the property ladder. However, supply simply is not keeping pace with this demand.
“It remains highly unlikely that house prices will see any meaningful decline in the mid-term and it is therefore unlikely that affordability will improve significantly. As a result, buying schemes are set to remain a go to option for many aspiring homeowners.
VITAL FOR THE MARKET
And she adds: “The key question is whether the government and new-build developers will choose to extend greater support to these buyers, or whether the focus will remain solely on delivering more homes.
“While increasing housing supply may help to moderate price growth, it does little to address wage growth and affordability, and it is unrealistic to expect housebuilding on a scale large enough to drive prices lower.
“For these reasons, buying schemes will remain a vital part of the housing market, helping people move out of the rental sector and into the longer-term security of home ownership.”
