Nearly a fifth of funding went to households earning between £60,001 and £80,000
Almost a quarter of a million homes have been bought by people using £14.3bn of Help to Buy loans since the introduction of the government’s deposit scheme, according to figures published this week.
The ministry of housing, communities and local government (MHCLG) said 248,075 properties had been bought using Help to Buy loans between April 2013, when the scheme was established, and 30 September last year.
Controversially nearly half (46%) of all loans went to households earning in excess of £50,000 a year. Nearly a fifth (18%) went to households earning between £60,001 and £80,000.
The total value of these equity loans was £14.3bn, with the value of the properties sold under the scheme totalling £65.7bn.
Most of the deals done under the loan scheme were with first-time buyers, who accounted for 81% of total purchases, or 201,784 homes.
The MHCLG said more than a quarter (26%) of the loans were made on homes priced at between £250,001 and £350,000, while just under a third (32%) were for semi-detached properties.
More than half (56%) of first-time buyers using the scheme put down the minimum 5% deposit.
Help to Buy is due to be wound down in 2023 and the government expects to recoup the money it has lent homebuyers by 2031 or 2032. It was extended by then-chancellor Philip Hammond to 2023 and limited to first-time buyers purchasing a new-build home.
The scheme has proved very profitable for leading housebuilders, and this has raised concerns in some quarters over firms generating substantial profits on the back of government – or taxpayer – funding.
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