A new version of the Help to Buy scheme could be included in the Conservatives’ next election manifesto, according to reports.
Prime Minister Rishi Sunak wants to give renters a leg-up onto the housing ladder and is considering interest free loans, says The Times. The scheme, which offered an interest free loan of up to 20% to those trying to buy their first home (or 40% in London), was introduced in 2013 but ended last October.
Autumn statement
It is now “back on the table” and could be included in Chancellor Jeremy Hunt’s autumn statement, while it has also been suggested that Help to Buy could be extended from new build properties to all homes.
“We cannot go into the next election without an offer for first-time buyers,” one minister said.
However, critics argue that by making homes slightly more accessible to first-time buyers, this increases demand while doing nothing to boost supply. The result is more expensive homes, making it even more difficult for many to save enough for a deposit, while making inflation worse.
Price limit
Tom Wilson, director of engagement at housing campaign organisation Priced Out, said: “Help to Buy is not a serious offer to first-time buyers. Demand side policy always ends up inflationary, and the old ISA scheme price limit wouldn’t get you a garden shed in the current market and is so utterly useless.”
He added: “Reform planning to enable us to build hundreds of thousands of homes a year. If you don’t do that, nothing else will help first-time buyers even remotely.”
