An official audit of the help-to-buy programme has concluded the scheme provided substantial social value, calculated at £25bn during the last financial year. The review found that the initiative successfully supported expanded home ownership, particularly in more affordable areas, and enabled more than 387,000 people to purchase homes, with over 328,000 of these transactions involving first-time buyers. Nearly half of the scheme’s customers reported they could not have bought a home without the assistance provided.
The findings have reignited internal debate within government about whether to introduce a successor programme. Housing Minister Matthew Pennycook and former housing secretary Steve Reed have reportedly advocated for creating a new version of the scheme to boost home ownership among younger voters. However, Chancellor Rachel Reeves has prioritized an alternative approach, focusing on increasing housing supply through planning reform and boosting new construction rather than implementing buyer assistance programmes.
The original help-to-buy scheme, introduced in 2013 by George Osborne, offered two main components: taxpayer-backed loans to reduce required deposits and government guarantees covering potential lender losses on high loan-to-value mortgages. Both versions applied to properties valued up to £600,000. Despite the review’s findings on value for money, the scheme has faced criticism from analysts who contend it primarily benefited those who would eventually have purchased homes anyway, particularly higher earners outside London and the south-east, and may have contributed to rising house prices.
Current government strategy emphasizes supply-side solutions rather than demand-side support for buyers. Ministers have committed £39bn for new social and affordable homes and undertaken significant planning reform to encourage development. A government spokesperson confirmed there are currently no plans to introduce a new help-to-buy scheme, noting that the comprehensive review was undertaken to evaluate what succeeded and what failed in the previous programme.
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