New “Help to Buy” scheme for young people, call
A ‘dearth of affordable mortgage lending’ and a lack of Government support since the withdrawal of Help to Buy is stopping first-time buyers from getting on the property ladder and creating even more urgency for a replacement scheme, according to the Home Builders Federation (HBF).
The Payback for Good Report, published by the HBF, shows that the scheme helped 387,278 people buy a new build home during its existence between 2013-2022. The majority of those (328,346) were first-time buyers. It also supported a doubling in housing supply.
By the end of March, 213,713 equity loans had been repaid – more than half (55%) of those granted, with the Exchequer making a return of £1.24bn on the Help to Buy scheme loans, including £218m last year alone.
Calls for government to publish own evaluation
The Government completed its own evaluation of the scheme earlier this year, but although it has been presented to ministers it has not been published publicly – something HBF has repeatedly called for.
HBF is also calling for a replacement equity loan scheme focused on first-time buyers and requiring a developer financial contribution to reduce the cost to the taxpayer. It suggests that a 20% equity loan scheme, supported by a developer contribution, could help transform the new build housing market, reduce investment risk and help to deliver new homes.
The period since the scheme’s withdrawal by the previous government marks the first time in 60 years that there has been no Government support scheme in place for buyers.
Neil Jefferson, chief executive at the Home Builders Federation, said: “The lack of Government support amidst a dearth of affordable mortgage lending is suppressing effective demand for new homes, preventing young people from getting on the housing ladder and thwarting attempts to increase the supply of new private and Affordable Housing.
“Publishing the government’s evaluation of Help to Buy, which was completed earlier this year, would help to set the record straight on the performance of Help to Buy and may assist in paving the way for a new support scheme for first-time buyers.”
