IFS Analysis: Higher-Income Households Benefited Most from Help to Buy Schemes
A new analysis by the Institute for Fiscal Studies (IFS) reveals that the Help to Buy mortgage schemes, launched by the UK government in 2013, primarily benefited higher-income households rather than improving social mobility. The schemes, which included taxpayer-backed loans and mortgage guarantees, were designed to assist first-time buyers during a period of rapid house price growth. However, the IFS findings indicate that these measures largely accelerated home purchases for individuals who could have eventually saved for deposits anyway, particularly those outside London and the south-east. The report suggests the policies had limited impact on affordability for lower-income groups and may have contributed to inflating house prices without significantly boosting housing supply. While the loan scheme improved affordability for new-build properties, its scope was narrow. Critics, including the House of Lords, argue funds would be better spent on increasing supply. Despite this, a version of the mortgage guarantee was made permanent by the Labour government in 2025. Conservative officials defend the original scheme, contrasting it with current challenges faced by buyers under Labour.
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IFS Analysis: Higher-Income Households Benefited Most from Help to Buy Schemes
A new analysis by the Institute for Fiscal Studies (IFS) reveals that the Help to Buy mortgage schemes, launched by the UK government in 2013, primarily benefited higher-income households rather than improving social mobility. The schemes, which included taxpayer-backed loans and mortgage guarantees, were designed to assist first-time buyers during a period of rapid house price growth. However, the IFS findings indicate that these measures largely accelerated home purchases for individuals who could have eventually saved for deposits anyway, particularly those outside London and the south-east. The report suggests the policies had limited impact on affordability for lower-income groups and may have contributed to inflating house prices without significantly boosting housing supply. While the loan scheme improved affordability for new-build properties, its scope was narrow. Critics, including the House of Lords, argue funds would be better spent on increasing supply. Despite this, a version of the mortgage guarantee was made permanent by the Labour government in 2025. Conservative officials defend the original scheme, contrasting it with current challenges faced by buyers under Labour.
The Guardian