H2B1 new builds are 24pc cheaper

Applicants using the scheme pay £193,318 on average, 24% of £254,000 for new builds as recorded in the ONS house price index for July.

Help to Buy 1 deposits were 84% lower than the market average in August. Assuming consumers opted for the full government contribution of 20% applicants paid just £10,827 for their deposit, compared to £69,235 on average.

Andy Frankish, new homes director at the Mortgage Advice Bureau, said: “New build properties are attractive to many groups of first-time buyers, offering a high standard of living without the need for renovation and lower maintenance costs.

“The Help to Buy equity loan scheme has been instrumental in making affordable new build homes more accessible, with the government’s contribution easing the burden of saving for a deposit.

“Many mainstream lenders and builders have put their weight behind the scheme, giving greater choice and availability to consumers.

“However, as new build properties gain in popularity, the construction industry must ensure that production meets demand to ensure conditions remain affordable for those who are new to the market.”

The average LTV for a Help to Buy 1 property was 72% in August, 2% higher than the market average of 70%.