Help to buy London: what you need to know

'Help to Buy London' is a new scheme where the government gives buyers an equity loan of up to 40 per cent of the value of the property they wish to buy.

It's available to first-time buyers and home movers, and there is no age limit, however you do need to prove you can can afford the mortgage (which can't be more than 4.5 times your annual earnings) plus the loan repayments.

The scheme is available until 2021, and you'll need a five per cent deposit. Buyers who save for a deposit through a ‘Help to Buy ISA' account can also benefit from a 25 per cent bonus of up to £3,000 to supplement £12,000 of savings. This bonus is credited over time: for each £200 saved, buyers will receive £50, but you have to save up at least £1,600 before claiming the extra payment.

“It’s very cheap relative to renting," says Johnny Morris, Head of Research at Hamptons International. "Over the first five years, renting a flat would cost nearly twice as much as the equivalent Help to Buy mortgage payments."

Watch the video to find out more...