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Help to Buy achieves short term objectives but long term effects remain to be seen

20 June 2019

The National Audit Office (NAO) has published its progress review of the Help to Buy scheme.  It concludes that the scheme's own objectives of increasing housing supply and ownership are being achieved. However, it has found that three-fifths of the buyers could have purchased a home without the scheme; 19% of the buyers have previously owned property and used the scheme to buy more expensive properties than first time buyers, and 10% of the buyers earned more than £80,000 (£90,000 in London).

The NAO highlights the opportunity costs of the scheme - i.e. not able to use the money for other priorities. While the government expects to recoup the investment by 2032, but recognises the risks of market down turns. The government also needs to improve processes for repayments and interests, which have been the primarily cause of arrears to date.


Read report here >