The government鈥檚 Help to Buy programme, now believed to be under threat, got a warm welcome from the construction industry when it was introduced five years ago
Source: Shutterstock Taylor Wimpey is one of many housebuilders that have benefited from Help to Buy
Messieurs, mesdames!
Whether the Help to Buy policy has made a significant difference to output or just profited housebuilders has been much debated, with speculation now growing that chancellor Philip Hammond may reduce or even end the initiative in next week鈥檚 budget. But what did construction think of Help to Buy when it was introduced by the coalition government five years ago?
黑洞社区 noted how pleased housebuilders were with the policy, which was 鈥減retty bloody generous鈥� according to one economist. It arrived on top of the existing 拢480m FirstBuy scheme. Smaller housebuilders were especially set to benefit, as government would put up all of the 20% loan for homebuyers itself, instead of both builder and government being required to make a 10% equity loan, as was the case under FirstBuy.
However, some economists had reservations. 鈥淚t鈥檚 a poorly designed policy. With limited money you have to think how to get most impact 鈥� and for this level of expenditure you could have had a much bigger impact on building,鈥� said Professor Duncan MacLennan, director of the University of St Andrews鈥� Centre for Housing Research.
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