Government £ 29 billion Helps to buy the scheme The House of Lords reported on previous Monday that it was unable to push up UK home prices and “provide value for money” to taxpayers.
The Government’s Help to Buy scheme has inflated house prices in England, according to a House of Lords report.
The Help to Buy: Equity Loan scheme will have cost around £29billion by the time it comes to an end in 2023, according to the report by the Lords’ built environment committee.
It said that this did not provide ‘good value for money’ for the taxpayer.
Instead, the cash spent on this plan could have helped replenish England’s declining inventory. Social housing The author of the report, sitting on the Lord’s Constructed Environmental Committee, said.
“This plan, which will cost around £ 29 billion in cash by 2023, will inflate prices beyond the value of subsidies in the most needed areas. It will be used more often to increase housing supply. ”
Help to Buy was designed to increase home ownership by offering equity loans to buyers.But it has been criticized as a developer subsidy that does almost nothing to address the shortfall. A really affordable home.
According to an analysis of official statistics by the Housing Charity Shelter, inventories of social housing have fallen by nearly 500,000 since 2000.
In particular, it claimed that the value of homes in more expensive areas had been pushed up by ‘more than the subsidy value’ – meaning that home buyers would have paid less for their properties had the scheme not existed.
This suggests that housebuilders charged more for their Help to Buy-eligible homes, knowing that buyers would be able to borrow 20 per cent of the purchase price from the government, interest-free for five years.
The report said the money would have been better spent on building more homes instead.
“Help to Buy has its strengths, especially outside of London, but in London and those demand hotspots, it’s directly tied to price. That was a problem,” said Chairman Baroness Neville-Rolf. Said.
Since the introduction of Help to Buy in 2013, approximately 340,000 homes have been purchased using equity loans, most of which are from first-time buyers. At the same time, the stock prices of leading builders, including persimmons, Barat Holmes Taylor Winpay has almost tripled.
The developers defended this plan and said it helped increase the number of homes built and increase access to them. “Help to Buy has been the number one factor in doubling housing supply since its introduction in 2013,” said David O’Leary, policy director for the industry group Home Builders Federation.
He also added that the scheme was currently paying dividends to the Treasury.
The Lords Commission will submit many proposals to address the country’s housing shortages, reform planning systems, support small builders, and direct funds to new social housing and training for construction workers. I’m asking the government.
The government published a white paper in August 2020. Ambitious planning Byzantine’s often curable planning system is intended to be simplified. This was a boon for small and medium-sized developers who struggled to navigate the time-consuming and costly planning process.
Small business builders make up only 10 percent of new homes built in the UK today, 39 percent in the late 1980s, according to reports that it is important to increase their numbers to solve the shortage. Decreased from.
However, the plan was put on ice by Michael Gove, who replaced Robert Jenrick as Secretary of Housing last year. He is expected to introduce a watered-down version of the reform later this year as part of a broader upgrade package.
“Uncertainty about future planning systems and delays in planning reforms have had a’calm impact’on homebuilding and uncertainties for homebuilders and planners,” said the Housing Industry Group, Charity. Reports using evidence from organizations, think tanks and scholars say. ..