A review into the future of the Help to Buy scheme is expected to land on the desk of incoming Prime Minister Andy Burnham when he takes office later this month, with ministers considering whether a new version could help revive the housing market.
The review, commissioned by Housing Minister Matthew Pennycook before the change in government, is understood to have examined whether a redesigned scheme could boost home ownership without fuelling house price inflation – one of the main criticisms levelled at the previous programme.
Help to Buy, introduced by the Conservative government in 2013, offered equity loans to buyers purchasing new-build homes with a 5% deposit. The scheme was later restricted to first-time buyers before closing in 2023.
According to The Times, officials have assessed whether a successor scheme could support demand while avoiding the inflationary effects critics associated with the original initiative.
ONGOING EVALUATION
A government spokesperson confirmed that a formal evaluation of Help to Buy is ongoing and will be published later this year.
The government has already pointed to existing support for buyers through the Mortgage Guarantee Scheme, shared ownership and proposals for a new First-Time Buyer ISA.
Any decision on reviving Help to Buy is likely to form part of the government’s wider strategy to increase housing delivery.
Labour pledged to build 1.5 million homes during this Parliament but slowing market activity and weaker buyer demand have made that target increasingly challenging.
Housebuilders have repeatedly argued that improving affordability and stimulating demand will be essential if new housing supply is to increase, particularly as higher mortgage costs continue to weigh on first-time buyers despite a more stable interest rate environment.
