Copy article

What would the 'ideal' Help to Buy look like?

Journalist: John Fitzsimons, Freelance

ended 04. May 2023

Not all brokers were fans of Help to Buy in its original carnation, so what would a relaunched Help to Buy look like in an ideal world? 

What sort of scheme could the Government put in place that would give FTBs a boost, but without it pushing up house prices artificially or just helping developers?

Or is that just a pipedream?

 

5 responses from the Newspage community

Copy all

Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
Any new version of Help to Buy should really be for the whole market, and not just First Time Buyers or New Build homes exclusively. For the previously owned properties, perhaps they can only be included in the HTB scheme if their EPC rating is A-C ? That would be an excellent reason to push for greener homes across the UK.
Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
Help-to-Buy schemes should not be restricted to new builds alone. By expanding this scheme to encompass existing housing, first-time buyers will have access to a wider range of options, and it can prevent artificially inflated prices for those eager to purchase their first property.

Furthermore, the government should provide incentives for starter homes, such as freehold properties with one or two bedrooms, to assist individuals in getting onto the property ladder. Modern construction techniques like modular construction could enable the swift construction of such homes.
Copy

Rhys Schofield
Brand Director at Peak Mortgages and Protection
The problem with Help to Buy was that a lazy government that gets through Housing Ministers like Leonardo DiCaprio ditches girlfriends at 25, was able use it as a smoke screen to wash their hands of any central strategy to build enough houses. The concept however of lending 20% of the value of a property interest-free for 5 years was really sound though. I'd like to see it back and apply to both new and used properties coupled with a proper national scheme of housebuilding because unless the supply issue is addressed we just have this constant inflationary pressure on prices.
Copy

Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
Given that the main issue for most buyers I find is the deposit, I think this is where any new scheme would ideally be targeted. Maybe a deposit matching scheme, on a pound-for-pound basis, upto a maximum of a 25% total deposit value (so a maximum of 12.5% from the State) and capped at properties valued at £500000, provided as a loan from the Government, repayable on the sale of the property and protected by way of a second charge on the property. The loan is not an equity share and the amount repayable is only what was originally borrowed and should be available on all property, not just new builds. Various other T&C's would be needed; so no renting the property out unless in specific situations and first-time buyers and other select groups only, for example.
Copy

Austyn Johnson
Founder at Mortgages For Actors
Ideally, an interest-free loan for the life of the mortgage with the option to repay monthly without consolidating. Or open this up to everyone, FTB are in need of help, but they are not often ready to face the big loan when it comes to i/o payments. The more seasoned homeowners are able to consider the future a bit more by way of experience.
Help to buy should have a faster repayment plan and not simply be a help to get in debt with no real resale value in the future.
It would be even better if the gov would limit how much a new property can be sold for. Some of the new 1-bed flats cost as much as a 4-bed from the 00s!