黑洞社区

A group of the UK鈥檚 most prominent politicians involved in housing have said the government鈥檚 Help to Buy initiative needs major reform or even to be phased out if housebuilding executives continue to be seen personally profiting from it.

The initiative was set up in 2013 by former prime minister David Cameron and former chancellor George Osborne and ensured government support for new home sales with loans worth 20% of the cost.

But the issue of executive pay 鈥� Persimmon chief executive Jeff Fairburn is being paid 拢110m under a bonus plan 鈥� has led critics to complain that public money is being used to bankroll eye-watering executive bonus schemes.

Now the former head of the civil service and a past chief executive of the Homes and Communities Agency, Lord Kerslake, has told 黑洞社区: 鈥淗elp to Buy needs to be more targeted; the government needs to expect more. This may mean making it conditional on caps on excessive bonuses, or requirements to deliver affordable housing, or only where it鈥檚 needed for scheme viability.鈥�

鈥淭he 拢10bn extension to Help to Buy put 拢1bn on the share prices of the big builders鈥�

Lord Best 

Liberal Democrat leader Vince Cable told 黑洞社区 that Help to Buy was 鈥渁 terrible idea, fuelling demand rather than increasing supply鈥� and that it was pushing people out of the market.

And former construction minister Nick Raynsford, who stepped down as an MP in 2015 and is now chair of housing association Heylo, described Persimmon鈥檚 bonuses as 鈥済rotesque鈥� and 鈥渧ery foolish from an industry in receipt of a lot of government largesse. It is the behaviour of a sector that thinks it鈥檚 capable of getting away with anything. It鈥檚 just greed.鈥�

Last October, prime minister Theresa May announced a further 拢10bn towards Help to Buy, ensuring its continuation until 2021.

But there are increasing calls, such as by crossbench peer Lord Best, a former chief executive of social policy charity Joseph Rowntree Foundation, to phase out support for Help to Buy completely. 鈥淲hen government announced its 拢10bn extension of the scheme, it put nearly 拢1bn instantly onto the share prices of the big builders, reflecting a view in the City that these subsidies help builders more than buyers,鈥� he added.

Raynsford added: 鈥淚t鈥檚 got to be phased out, but the problem is you can鈥檛 cut it out without dire consequences. It鈥檚 a drug.鈥�

A spokesperson for the Home Builders Federation said Help to Buy 鈥減layed a big part in delivering the significant increase we have seen in housing supply鈥� and added: 鈥淭he industry has delivered huge increases in supply in recent years. Housebuilders are committed to continuing to deliver further increases and supply even more high quality homes.鈥�