Supply of H2B homes drops by 7.4pc

The analysis of properties for sale in England and Wales up to a value of £600,000 also shows that the average price of properties for sale that qualify for Help to Buy has risen 5.5% since March 2014.

The biggest fall in properties eligible for Help to Buy in the past year has been in the East of England, with a 12.3% reduction in suitable stock on the market, while average prices have climbed 6.1% over the same period. In London, the typical value of a property qualifying for Help to Buy has risen by 11.7% since March 2014.

Stockport has witnessed the sharpest decline in properties eligible for Help to Buy, with available stock dropping 24.3% from a year ago. Compared to March 2014, there are now 16.9% fewer properties on the market in Rochdale that meet the scheme’s criteria, and 15.6% less in Huddersfield.

Further south, the number of properties for sale in Worcester, Cheltenham and Exeter that qualify for Help to Buy support has increased 5.4%, 3.3%, and 3.2% respectively in the past twelve months.

Of all London boroughs, Southwark, Lambeth, Waltham Forest and Newham have seen the greatest annual rise in supply of homes up to £600,000, increasing by over 15%.

Lawrence Hall of said: “The Help to Buy scheme was intended as a leg up for flailing first-time buyers, but in some areas that footrest has since been pulled from under their feet.

“Greater demand hasn’t been met by greater supply of homes on the market, and instead the soaring price growth of the past year appears to have airlifted many properties out of the starter home zone.

“The pool of homes on the market within reach of Help to Buy assistance needs to expand, or this pinch on supply will continue to inflate prices at the bottom rungs of the ladder.”