The latest update on the Help to Buy scheme appears to cast some doubt on whether the beneficiaries of help to buy were the people the government intended and replays the original charges that Help to Buy has done little more than fuel house price inflation.
These arguments are difficult to substantiate either way but it does appear counterintuitive that the taxpayer is subsidising people earning more than 50k a year to raise finance for house purchasing, helping private landlords to pay their mortgage and make profits paying out billions in housing benefits and paying property companies extremely high rates to provide temporary accommodation.
Something in the system is going very wrong. I think the construction of significant volumes of affordable homes will partly address these challenges. Only the state has the commissioning power and financial leverage to make this happen. The Government cannot ignore this potential solution for ever.
Theresa May pledged £20bn for Help to Buy in 2017 Help to Buy housing scheme increasingly benefiting higher earners The government’s flagship, multibillion pound scheme for helping people to buy a home is increasingly giving taxpayer funded loans to higher earners, The Independent can reveal. The Help to Buy initiative was designed to help cash-strapped buyers, but analysis reveals the average salary of people receiving equity loans has shot up since it was introduced. Official government data reveals the average household income of people benefiting from the £8.3bn scheme is continuing to rise, and now stands at just under £50,000. In London, the figure is even higher, with the average recipient of a Help to Buy loan having a household income of almost £72,000.