London is running out of Help to Buy properties, it has been claimed, as demand outstrips a relatively stable supply.
The number of Help to Buy homes available in the capital has collapsed by 64% over the past 14 months, research by developer Project Etopia has revealed as builders fail to deliver enough properties to keep up with demand.
Many of London’s boroughs have only a handful of Help to Buy homes available through the scheme, which lends first time buyers a maximum 40% of a property worth up to £600,000.
Hammersmith & Fulham has just one Help to Buy property available, a one-bedroom apartment available for £595,000, while Kensington & Chelsea has three, Westminster has four and Bexley and Camden both have just 11.
In total, 20 out of 32 boroughs in London have fewer than 50 Help to Buy properties for sale.
And while the number of properties overall available through the scheme is low, half of the capital’s boroughs do not contain houses for sale through the scheme and instead only offer apartments.
Project Etopia says the number of houses build in London has remained stable over the past 12 months, suggesting that the shortfall is down to extra demand ramping up.
“The gradual extinction of Help To Buy homes in London demonstrates that interest-free government loans are not the answer to the housing crisis,” says Joseph Daniels, CEO of Project Etopia.
“Only rapid house building on a large scale and innovative ideas, including modular construction, will prove to be a lasting antidote.”