HTB has definitely increased the prices of HTB eligible properties because they realised that buyers could afford a bit more w/ Gov assistance and so sellers are squeezing people for it.
Really, HTB should not have had a restriction on new builds. It's laughable because the restriction would make sense if the Gov was allowing anyone to actually build new properties.
I think you're FYIGM'ing. Idk where you're finding these decent 2 bed "houses" (I think you mean flats) in London for "250k". Hell even a 2 bed flat is mostly around the 350-400k mark in most of London, unless you want to raise your family in Croydon or something lol
It’s not that buyers could afford a bit more, buyers could afford essentially to pay double in London.
This isn’t because of the deposit but because HTB essentially allows you to buy a property for double the price in London.
Most people couldn’t afford a 500K property not because they can’t save up £50K but because they won’t have a salary north of £100K for the bank to loan them the rest as lenders cap the loan amount at 4-4.5 times your annual salary.
So now people that earn £50K can buy a property that only people that earn £100-120K could regardless of their deposits.
Really, HTB should not have had a restriction on new builds. It's laughable because the restriction would make sense if the Gov was allowing anyone to actually build new properties.
I think you're FYIGM'ing. Idk where you're finding these decent 2 bed "houses" (I think you mean flats) in London for "250k". Hell even a 2 bed flat is mostly around the 350-400k mark in most of London, unless you want to raise your family in Croydon or something lol