Episode Details

New report from the Institute for Fiscal Studies reveals Help to Buy scheme primarily benefited higher earners in less expensive areas, with limited impact on affordability or social mobility. The scheme, launched in 2013, offered government loans for deposits and mortgage guarantees. While it helped thousands of first-time buyers and stimulated construction, it also contributed to rising house prices. The equity loan component has ended in England and Scotland, with Wales following suit by September, and it never reached Northern Ireland. The mortgage guarantee, however, became permanent across the UK. Critics argue it increased house prices, while supporters credit it for boosting construction and job creation. Despite its peak in 2014-2015, when it backed one-fifth of first-time buyers in England, the scheme disproportionately helped the wealthy and overlooked pricey areas like London and the South East. As calls to revive the scheme grow, the government is focusing on a new mortgage guarantee for young families and renters, while a full evaluation continues.

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