Key facts
- A government review found the Help-to-Buy scheme delivered "very high value for money."
- The scheme provided £25 billion in social value to the UK in the last financial year.
- Over 387,000 people bought homes through the scheme, with more than 328,000 being first-time buyers.
- Nearly half of customers reported they could not have purchased a home without the scheme.
- The review did not account for the scheme's impact on house prices.
- There are currently no plans to introduce a new Help-to-Buy scheme.
A government review has concluded that the Help-to-Buy scheme, introduced by former Chancellor George Osborne, delivered "very high value for money." The official audit calculated that the program provided £25 billion in social value to the UK in the last financial year. This finding supports arguments from senior government figures, including Housing Minister Matthew Pennycook, who have been advocating for the resurrection of a similar initiative to boost home ownership among young voters.
The report highlighted that the scheme facilitated expanded home ownership, enabling individuals to purchase homes sooner or acquire larger properties than they might have otherwise afforded. It also noted that more than 387,000 people utilized the scheme to buy a home, with over 328,000 of these being first-time buyers. Crucially, nearly half of the scheme's users stated they would not have been able to buy a home without its assistance.
However, the review did not assess the scheme's impact on house prices, a key criticism leveled against it. Despite this, the findings challenge the Treasury's previous assertion that Help-to-Buy was an expensive method for increasing home ownership and new housing supply. The government has stated there are no current plans to reintroduce the scheme, emphasizing the importance of learning from its successes and failures.
Discussions within the government have seen figures like Steve Reed pushing for a new scheme focused on those unable to afford homes in cooling markets, potentially involving a 20% equity loan from developers. However, Chancellor Rachel Reeves has reportedly favored focusing on increasing housing supply through planning reforms instead. The Home Builders Federation has also proposed a similar equity loan program.