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Quoted in Property Portfolio Investor on 29 September 2026.
Homes England figures show that 45% of Help to Buy flats sold or paid off in England during 2024/25 were worth less than their owners paid for them. My view is that many were overpriced from the start: Help to Buy created buyers who could only spend on new builds, and prices rose to meet that demand.
45% of Help to Buy flats sold or paid off in England in 2024/25 were worth less than their owners paid (Homes England).
New builds usually sell at a premium over similar older homes.
A valuation below the price means a bigger deposit or renegotiating.
Why have Help to Buy flats lost value?
New builds usually sell at a premium over similar older homes, and the figures show flats have fared worse than houses. When an owner comes to sell, they’re competing with the second-hand market, where that premium doesn’t exist.
What I told Property Portfolio Investor
“The flats were already overpriced the day the keys were handed over. Help to Buy gave developers a queue of buyers who could only spend on new builds, so prices rose to meet it, and now the buyer and the taxpayer are splitting the loss.”
Read the full article in Property Portfolio Investor.
What does this mean if you’re buying a new build now?
The Prime Minister promised a Help to Buy-style scheme, Your First Home, on 26 September 2026. Whatever scheme you use, it’s worth knowing how the price compares with similar older homes nearby and how a lender’s valuation might treat it. A valuation below the price means finding a bigger deposit or renegotiating.
More on new build mortgages, what to do about a new build down valuation and how new build incentives affect your mortgage.
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