Help-To-Buy Helps Lock Out First-Time Buyers

The government’s flagship Help-to-buy scheme has provided only temporary help to first-time buyers and locked other would-be homeowners out of the market, according to a housing economist. The scheme allows homebuyers with just 5% of a property’s price to buy a new-build home with the help of an interest-free loan or an existing home with a government-guaranteed mortgage. But while “a lucky few” first-time buyers have benefited, said Matthew Pointon, property economist at Capital Economics, the impact on house prices means others are no longer able to afford homes. “The Help-to-buy scheme was able to temporarily boost the availability of low deposit mortgages, helping a lucky few first-time buyers. But that improvement is proving to be temporary, as the resulting boost to house prices acts to lock other would-be buyers out of the market,” he said. Read more on the Guardian website.