Government review could mean early end for Help to Buy
Reports have indicated that the Help to Buy Scheme could be brought to an end prior its expected closure.
As part of a review process, a team from the London School of Economics have been asked by the Department for Communities and Local Government to evaluate the scheme.
According to Property Week, the introduction of a tapering system or total abandonment of the scheme may come under the review.
The Help to Buy equity loan scheme has been hailed as a key stepping stone for first-time buyers struggling to get onto the housing ladder. Having been used by over 100,000 people, the scheme can reduce the size of a deposit to 5%, with government loaning the remainder.
Government statistics from 2015 indicate that the scheme has helped 14% of all new build housing construction, indicating how the scheme has been beneficial for developers.
The support that the scheme provides was also mirrored by the drop in shares experienced by numerous building companies, with names such as Taylor Wimpey and Barratt suffering share-price falls of approximately 5%.
Commenting on the need for the report, a spokesman for the DCLG stated: “As we said in our housing white paper, we have committed £8.6bn for the Help to Buy equity loan scheme to 2021, ensuring it continues to support homebuyers and stimulate housing supply.
“The government also recognise the need to create certainty for prospective home owners and developers beyond 2021, so will work with the sector to consider the future of the scheme.”