HomeOwner Alliance comments on the National Audit report on Help to Buy
Paula Higgins, the Chief Executive of the HomeOwners Alliance, comments on the National Audit report findings on the Help to Buy scheme:
“The Government’s Help to Buy scheme was launched after the financial crash to stimulate lenders to lend and encourage house builders to build. And while it has succeeded in helping a lot of people get on the property ladder who couldn’t have otherwise afforded it, the National Audit Office confirms it has also helped many people on the ladder that could have bought without the scheme.
“The HomeOwners Alliance Annual HomeOwners Survey published this month found that two thirds of UK adults and 64% of renters think that the Help to Buy equity loan scheme is a good idea in terms of helping first-time buyers get on the ladder as it addresses the major hurdle of saving a deposit.
“But one in six (17% of UK adults and 15% of renters) of our survey respondents think Help to Buy is a bad idea. The major criticisms are that the scheme inflates house prices and contributes to excessive house builder profits.
“When Help to Buy comes to an end more people will have to turn to The Bank of Mum and Dad – already the 12th biggest lender last year. Without the Bank of Mum and Dad more first time buyers will struggle even more to buy a home. Our 2019 Annual HomeOwners Survey, polled by YouGov, found more than three quarters (77%) of those renting homes in the UK would like to own their own home – that is 3.5 million aspiring to own. But 2 million (6 in 10) of them think they will never be able to. The majority of first time buyers quoted high property prices and struggling to save for a deposit as the biggest barriers.
“When Help to Buy ends in 2023, those without the Bank of Mum and Dad may turn to Shared Ownership as a means of taking their first step onto the housing ladder. But it’s a complicated scheme. Our survey found that less than half of UK adults (49%) and 46% of renters think Shared Ownership sounds like a good idea as an alternative to renting. A third (33% and 32% respectively) think it is a bad idea.”
Kindly shared by HomeOwners Alliance (HOA)