1. ITV Report

London prices top Help to Buy loans

Photo: Anthony Devlin/PA Wire

The Government's new Help to Buy scheme will mean homebuyers will only have to find as little as five percent to secure a mortgage.

Someone trying to buy a £200,000 house currently needs to save up a deposit of £40,000.

Under the new scheme, leading banks will offer a range of new Help to Buy mortgages - up to 95 per cent of the property's value - for homes worth up to £600,000.

Depending on the size of deposit, the government will then guarantee up to 15 per cent of the property's value, in return for a fee from the lender.

Lenders can start offering the mortgages from today, and they will be guaranteed by the Government from January 2014.

Credit: Dominic Lipinski/PA Wire

This scheme applies to properties costing up to £600, 000. However, according to the latest data from Land Registry, average house prices in four London boroughs are higher than the 'Help to Buy' scheme would allow. Average house prices for August 2013 show:

  • Kensington and Chelsea: £1, 150, 156
  • City of Westminster: £817, 398
  • Camden: £680, 697
  • Hammersmith and Fulham: £624, 752

Other areas in the capital where property prices exceed pre-recession levels:

  • Hackney: £468, 165
  • Wandsworth: £463, 737
  • Lambeth: £408, 027
  • Richmond upon Thames: £512, 031
  • Southwark: £423, 877
  • Haringey: £394, 118

Areas where property prices have returned to pre-2007 levels:

  • Brent: £352, 849
  • Merton: £372, 350
  • Ealing: £358, 868
  • Barnet: £376, 806
  • Hounslow: £310, 290
  • Kingston upon Thames: £338, 308
  • Lewisham: £296, 559
  • Harrow: £315, 599
  • Greenwich: £285, 059
  • Waltham Forest: £268, 858

Areas that haven't yet recovered:

  • Tower Hamlets: £373, 369
  • Bromley: £305, 521
  • Hillingdon: £272, 363
  • Redbridge: £300, 766
  • Enfield: £267, 581
  • Sutton: £259, 391
  • Havering: £260, 630
  • Bexley: £234, 093
  • Croydon: £253, 000
  • Newham: £227, 692
  • Barking and Dagenham: £215, 784

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