"While a scheme like Help to Buy may be at odds with the core values of a Labour government, we must recognise its success and the clear need for intervention. Housebuilding targets alone are simply not enough – especially as no government in recent memory has ever hit them"
- John Phillips - Just Mortgages and Spicerhaart
John Phillips, CEO of Just Mortgages and Spicerhaart, says that the scheme is sorely missed by first-time buyers, especially those living in and around London. He argues that even with recent improvements in mortgage rates, the affordability pressures on first-time buyers are still too high, particularly with higher rents.
The government scheme came to an end in March last year, having helped more than 350,000 people buy their own homes since its launch in 2013. In the process, the scheme also helped to generate nearly £2 billion in revenue for the Treasury.
Not only will this contribute towards the reported £22bn black hole in the UK’s public finances, but John argues that this support will help move the entire market and the wider economy. He calls for the return of the scheme and for an expanded version, including second-hand and pre-owned properties to increase opportunities for potential first-time buyers.
John Phillips said: “While some may question its legacy, there’s no doubting the success of Help to Buy in getting people onto the property ladder. Even with recent improvements in rates, there’s still a clear need for this scheme to return, especially in and around London where it is sorely missed, and for those unable to save for deposits due to ever-higher rents.
“I urge the Chancellor to put forward a new version in the upcoming Budget, and one that includes pre-owned properties. Not only will this create real opportunities for first-time buyers, but their activity will help ignite the entire housing market and will support the wider economy too. Not only is Help to Buy recognised by the public, but both lenders and developers like the scheme, are receptive to a return and can easily implement it again.
“While a scheme like Help to Buy may be at odds with the core values of a Labour government, we must recognise its success and the clear need for intervention. Housebuilding targets alone are simply not enough – especially as no government in recent memory has ever hit them.
"Increasing supply must work in tandem with tangible support to increase the routes to homeownership. If not a return to Help to Buy, then the government really needs to get behind the schemes actually helping people buy in today’s market, such as Shared Ownership.”
