38% of homebuyers who used Help to Buy this year would be ineligible after 2021
13 November 2018
By Andi Michael
With the news that the government are revising the Help to Buy Equity Scheme from 2021, making it only available to first time buyers, and imposing regional price caps, our data tells us that over a third of the people who used the scheme in 2018 would no longer be eligible.
The government has reassessed the usefulness of the Help to Buy Scheme and has made changes for the final two years of the scheme from 2021-2023.
The changes include ensuring the scheme is only open to first time buyers, and to implement regional price caps on Help to Buy properties. The revised scheme will focus on being useful for first time buyers and enabling them to get on the property ladder, as well as providing properties at realistic prices in that region.
Our data shows that over a third of people who used the scheme in 2018 would no longer be eligible in 2021. This shows just how much the changes were needed in order to make the scheme support first time buyers.
Rob Houghton, CEO of reallymoving.com said:
“Despite its improvements, we’re pleased to see the scheme being scaled back, given that our analysis suggests there’s a risk that the Help to Buy Equity Loan scheme encourages higher prices, more than it helps first-time buyers get on the ladder or encourages new properties to be built.”
Our data suggested that those using the Help to Buy Equity Scheme paid 8% more
than those buying new homes without the scheme.
This was not the only source criticism this year, as government data revealed the average income of those benefiting from the scheme was just under £50,000
, or £70,000 for London.
Making changes to the scheme to refocus on giving potential first time buyers opportunity is a step in the right direction.
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Ricky on 25/01/2020