Personal finance experts have issued a warning, that thousands of prospective first-time buyers must act now if they are to secure a Help to Buy property on just a 5% deposit.

The guidance from money.co.uk comes just after the government confirmed last week, that applications for the new Help to Buy scheme will open from December 16. This means buyers have just over three weeks to reserve properties using the current, more generous equity loan scheme- the deadline for applications falls on December 15.

After that, first-time purchasers may face reduced options through regional price caps being introduced across England. While the government has aimed to keep regional caps in line with local house prices, research has revealed almost two fifths (39%) of new build properties within Local Authorities across the country are higher than regional price caps being introduced.

Cities most affected by regional Help to Buy price caps:

Findings reveal that cities affected by the new regional price caps span all regions of the country. Cambridge is the city where first time buyers are set to struggle the most to purchase a home as the average new-build home costs £606,151.

It is almost £200,000 more than the price that the government has capped the scheme within the city’s region (The East of England). Second on the list is the Yorkshire city of Ripon (+£120,324), followed by York (+£117,519) and Bath (+£111,002).

Overall new build homes in one in four (26%) cities across the country have an average new build house cost above their regional price cap.