“There’s no denying that the Help to Buy scheme has been successful in helping many gain a foot on the ladder who might otherwise have struggled to do so and in that respect, it has had a positive impact. 
This has been fuelled by a monumental effort on the part of the nation’s housebuilders who have delivered the stock required to meet this demand.
While the scheme does have its critics, and some may say downfalls, with many believing it has actually helped to inflate prices, it’s important to remember a few things in the wider context of the market.
A dwindling level of stock across our major cities and London, in particular, is the primary cause of increasing house prices and demand remains robust with or without schemes like Help to Buy. When you also consider that Help to Buy is restricted to new build homes, which often carry a price premium due to the quality of build amongst other factors, the price paid via the scheme is always going to exceed that of the wider first-time buyer market.
It may not have been the quick-fix solution to the long term supply issues that we’ve been searching for, but there will be many homeowners across the nation, the majority of which are first-time buyers, who are thankful for the boost it has provided them in getting onto the housing ladder.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“The government’s head in the sand approach to solving the housing crisis revolves around fuelling an already overheating level of buyer demand and the Help to Buy scheme is the feather in their cap of failure.
What’s more, many of those to have ‘benefitted’ from the scheme are now facing down the barrel of an increase in costs as the interest on their loan starts to come into play. So not only are many now tied into a property they really couldn’t afford to start with, those looking to buy now are forking out much, much more for the privilege.
In fact, five percent of properties funded by Help to Buy have been for £500,000 or more, with five percent of buyers also earning £100,000 or more. In these instances, you have to argue that the use of the scheme is unnecessary and simply fuels luxury purchases at the expense of the taxpayer.
It’s time the government stops flogging this dead horse in its various guises and addresses the actual issue which is clear for all to see. We need more houses to be built and we needed them five years ago.”
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