Help-To-Buy Loan Scheme Nets Treasury £213m In Paper Profit

Rising house prices across much of England mean a government scheme to help buyers of newbuild property may have made more than £200m for the Treasury in its first two-and-a-half years. The help-to-buy equity loan scheme gives buyers an interest-free loan for five years in return for a percentage stake in their property. When the home is sold, the buyer returns the same percentage of the sale price, meaning that any fall or rise in house prices affects the return. Analysis by Hometrack suggests that a surge in house prices means the total value of homes bought through the scheme since its launch in April 2013 has increased by more than £1bn.  Assuming each buyer took the maximum 20% loan to buy the property, Hometrack said the government’s stake is worth £213m on the £2.7bn it has put up through loans. Read more on the Guardian website.