11th March 2016
The government’s Help to Buy scheme, designed to help first-time buyers, has given a leg up to 2,000 households with income over £100,000.
The Help to Buy mortgage guarantee was brought in to help young people and families on low income buy their first home but Treasury figures show one in three of those who benefited had a combined household income of more than £50,000 and more than one in six earned more than £60,000 combined.
There have also been 2,035 with a total income of more than £100,000 that have taken out mortgage guarantees since they were introduced in October 2013. Under the scheme the government guarantees the loans of buyers with small deposits of between 5% and 20% for properties priced up to £600,000.
Labour housing spokesman John Healey MP, told This Is Money that the scheme was benefiting those with money at the expense of those without.
‘[Chancellor] George Osborne is throwing money at those who can already afford to buy, at the expense of those who genuinely need a hand up,’ he said.
‘People will be astonished that households earning more than £100,000 received Help to Buy loans. Support for people wanting to buy a home must be available first and foremost for those who need it.’
A total of 73,726 mortgages have been awarded under the guarantee scheme. The largest number of guarantees went to buyers with combined household earnings of between £30,000 and £40,000. The average household income or buyers was £45,308.
The average price of a home bought under the Help to Buy mortgage guarantee scheme was £155,897 – lower than the national average of £288,000. However, the number of people taking out mortgage guarantees fell 12% between 2014 and 2015 – 38,700 loans versus 34,200 loans.