Help To Buy scheme to be scrapped
GEORGE Osborne’s flagship Help To Buy scheme is set to be ditched because of fears it is handing billions of pounds in benefits to people who are already well-off.
The scheme which provides loans to help first-time buyers get on the housing ladder was part of Mr Osborne’s legacy as Chancellor.
According to reports ministers are planning to replace it with a new system after the scheme expires in 2021.
It is expected the new arrangement will focus on helping out the lower-paid, rather than giving “handouts” to the middle classes.
Official figures this year revealed the average wage of somebody supported by Help To Buy is £55,000 – more than double the average wage of £26,000.
Since its launch in 2013 the Government has provided more than £8.9billion of support. The scheme has been extended to last until 2021 with an additional £10billion already pledged.
The programme has come under fierce criticism at a time when public finances remain tight.
Matt Kilcoyne, from the Adam Smith Institute think tank, said: “Scrapping the scheme is a good step toward a housing market that works for everyone.
“The well-off shouldn’t get a handout from government that pushes up the price of houses in already expensive markets.”