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06/09/2018

Housebuilders call government’s Help to Buy scheme an ‘unprecedented success‘

Words: Huw Morris

Up to last March, 170,000 homes were purchased under the equity loan scheme – four out of five of them by first-time buyers, says research by the Home Builders Federation (HBF).

Since the scheme’s launch in April 2013, housing supply has increased by “an unprecedented” 74 per cent to supply levels last seen since the 1950s. Planning permissions, which the HBF describes as a “strong indicator of future supply”, are up by 88 per cent in the same period.

The research, unveiled as ministers consider the scheme’s future, estimates that the £8.9 billion invested by the government during the scheme’s five years could now be worth £9.8 billion, an uplift of 10.5 per cent or as much as £935 million.

The HBF adds that the 48,000 homes sold through Help to Buy last year helped to sustain an estimated 150,000 jobs.

On an annual basis, the additional house building activity is estimated to provide or fund 20,000 affordable homes, generate £1 billion in tax receipts and contribute £73 million towards education through section 106 contributions.

Image credit | Shutterstock 

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