Projected £2 billion return from Help To Buy initiative
Help to Buy’s report highlights need for new first-time buyer support, says HBF
The Home Builders Federation (HBF) has revealed that the Help to Buy equity loan scheme is projected to generate a return on investment exceeding £2 billion for UK taxpayers, according to its recent report, Road to Redemption, published on October 28, 2024. The report draws from government data, indicating that the positive return on investment is expected to be achieved through loan repayments and accrued interest.
Launched in 2013, the Help to Buy scheme aimed to address limited mortgage availability that was hindering housing supply and preventing prospective buyers from stepping onto the property ladder. It enabled nearly 400,000 buyers to purchase energy-efficient, newly built homes before it was discontinued in 2023. Approximately one-third of these buyers were first-time homebuyers, many of whom may have struggled to buy a home otherwise.
Key insights:
- The HBF report highlights that the scheme has already brought in over £900 million from the first 40% of loans repaid, benefiting the UK Exchequer.
- A total of 154,275 households have fully repaid their loans.
- The scheme has generated a net return of £718 million, equivalent to a 9% return on the original loan values.
- An additional £220 million from interest payments.
