Chancellor has allocated 拢6bn to extend the scheme to the end of parliament in 2020

houses

Chancellor George Osborne has committed 拢6bn to extend Help to Buy to at least 2020.

Osborne made the announcement on Wednesday as he confirmed the Treasury has provided the 2016/17 allocation of 拢1.5bn to the Homes and Communities Agency (HCA) for the government鈥檚 controversial scheme.

Osborne said Help to Buy, the scheme under which first time buyers are given equity loans to help them get a foot on the housing ladder, is 鈥渂oosting the economy more widely by driving an increase in house building in Britain, ensuring long-term housing supply and creating jobs.鈥�

Stewart Baseley, executive chairman of the Home Builders Federation, added: 鈥淓xtending the scheme to 2020 provides certainty of demand that allows home builders to recruit the people and invest in the land and supply chains required to support further sustained increases.鈥�

Just fewer than 94,000 people have bought their homes through Help to Buy. Around 1.3m people are eligible for the scheme since it was extended to housing associations. The average house price under Help to Buy currently stands at 拢184,000, significantly below the national average of 拢273,000.

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