Help to buy has helped almost 1,000 Scots to buy

THE GOVERNMENT’S controversial Help to Buy scheme has helped almost 1,000 people in Scotland get on the housing ladder, according to the latest figures.

Around 7,313 households have been helped by the Help to Buy mortgage guarantee scheme in the first six months since its launch, with a total value of £1 billion, representing just 1.3% of all mortgage completions in the UK over the same period.

In Scotland, around two and-a-half as times as many mortgages have been handed out under the guarantee scheme as in London, at 957 versus 385.

Some experts say calls to tighten controls on the scheme amid fears about its impact on pushing up house prices are a “red herring”.

However, others argue placing further curbs on the scheme, which offers help to both first-time buyers and home movers with 5% deposits, would send out a strong message to help calm the market.

Paul Smee, director general of the Council of Mortgage Lenders (CML), said: “Broadly, we should be reassured by the latest data on Help to Buy.

“Any worry that the scheme risks stoking a housing boom, fortunately, does not seem to be playing out in practice so far.”

However, Rob Wood, chief UK economist at Berenberg, argued the impression the scheme gives to the housing market matters more than its direct impact.

He said: “Curtailing the scheme — in any way — would send a strong, worth while, signal.”