Government considers Help to Buy revival

A sharp slowdown in new-build sales has led the Government to consider introducing a successor to Help to Buy to support first-time buyers.

The Ministry of Housing is reported to be reviewing its legacy, assessing how earlier rounds of Help to Buy affected supply, prices and buyer access. It ran from 2013 to 2022 and allowed buyers to purchase a new-build home with a 5% deposit alongside a government-backed loan of up to 20% and 40% in London. Its findings will be published in a report in the spring.

Similar scheme

One source involved in the discussions told the Telegraph a similar scheme is under consideration, although no decision has yet been reached.

Matthew Pennycook MP, Housing Minister

Housing Minister Matthew Pennycook told MPs at a recent committee hearing that the Government is examining the issue, saying: “We are doing things in this space… we have no current plans for a replacement Help to Buy scheme, but we will continue to have those discussions.”

It comes as Savills figures show new-build transactions fell to their lowest level since the financial crisis last summer, with London sales hitting a record low. Housebuilders argue that without measures to stimulate buyer demand, Labour’s target of delivering 1.5 million homes by 2029 will be difficult to achieve.

You’ve got to have confidence that you’ve got a market to sell your homes into.”

Steve Turner, Executive Director, Home Builders Federation

Steve Turner, Executive Director at the Home Builders Federation, said: “You’ve got to have confidence that you’ve got a market to sell your homes into.

“The lack of Government support amidst a death of affordable mortgage lending is suppressing effective demand for new homes, preventing young working people from getting on the housing ladder and stifling investment in new private and affordable housing.”

A Ministry of Housing spokesman said there are no plans for another Help to Buy scheme, but added that the Government remains committed to reforms designed to make home ownership more accessible.

Source: The Negotiator