Help to Buy costs us £7.5m a day

TAXPAYERS are shelling out £7.5million a day on a scheme for first-time buyers that has driven up house prices.

Help to Buy offers public money to house-hunters struggling to raise a deposit so they can secure a mortgage, but has also lined developers’ pockets.

But, since the scheme began in 2013, nearly £7.4billion has been lent, including more than £2billion in the first nine months of 2017 – £7.5million a day.

The scheme allows families to buy newbuilds worth up to £600,000 using deposits of only 5 per cent – up to £30,000.

Taxpayers fund as much as 20 per cent of the cost of a house, repayable only after 25 years or when the home is sold. Russ Mould, of savings group AJ Bell, said: ‘All this has done is drive up prices.’

The Government said there was little evidence of a significant impact on house prices from the scheme.