New “Help to Buy” scheme for young people, call
The Home Builders Federation has renewed its calls for the government to publish its commissioned evaluation of the Help to Buy scheme, which ran from 2013-2022, and to announce a replacement after highlighting the benefits of the scheme in a new report, The Payback for Good Report.
Meanwhile, the Government-commissioned evaluation of the scheme was completed earlier this year and presented to ministers but has not yet been published.
HBF’s own evaluation shows the scheme helped 387,278 people buy a new build home – most of which (328,346) were first-time buyers. It also supported a doubling in housing supply.
More than half of loans repaid
Its analysis shows that by the end of March, 213,713 equity loans had been fully paid – more than half (55%) of those granted. Figures from Homes England show that the exchequer made a return of £1.24bn on the Help to Buy scheme loans, £218m last year alone.
HBF says 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.
HBF has also outlined what it believes would work as 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.
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.
“If Government wants to see housing supply increase, it has to tackle the dual constraints of a lack of viability due to the overly burdensome level of taxation and policy costs levied on development, and the suppressed level of demand that is preventing investment in new sites.
“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.”
