An official audit of the help-to-buy programme, originally introduced by George Osborne, concluded that the scheme provided £25bn in social value to the UK in the last financial year. The review found that the initiative successfully supported expanded home ownership, particularly in already affordable areas, and helped many first-time buyers onto the property ladder sooner than they might otherwise have managed.
The programme achieved its core objective of promoting home ownership, according to the findings. Data showed that more than 387,000 people purchased homes through the scheme, with over 328,000 being first-time buyers. Nearly half of participants reported they could not have bought a home without the assistance. The audit did not measure the scheme’s impact on house prices, but it directly addressed Treasury concerns about whether it represented an efficient use of public funds for boosting home ownership and expanding housing supply.
The results have reinvigorated arguments among senior government figures, including housing minister Matthew Pennycook and former housing secretary Steve Reed, to develop a Labour version of the scheme as a means of increasing home ownership among younger voters. However, Chancellor Rachel Reeves reportedly rejected these proposals, preferring instead to concentrate on increasing housing supply through planning reforms and other development incentives. The current government has not announced plans for a new help-to-buy programme.
The original help-to-buy concept, launched in 2013, offered two approaches: taxpayer-backed loans reducing required deposits, and government coverage of potential lender losses on high loan-to-value mortgages. Both versions applied to properties valued up to £600,000. While popular with buyers, the schemes faced criticism for benefiting those who might have purchased homes regardless and for potentially contributing to rising property prices. Recent analysis suggested significant benefits accrued to higher earners who would eventually have afforded purchases independently.
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