A Treasury spokesman said there was already an “existing scheme providing a 95pc loan to value mortgage was introduced in April 2021, has so far enabled over 39,000 households to buy a home – over 86pc of which are first time buyers.”
Help to Buy allowed first-time buyers to purchase a new-build property with only a 5pc deposit with the Government providing an initially interest-free loan to cover the rest of the down payment. Launched in 2013, the scheme supported over 350,000 first time buyers onto the housing ladder before its closure last March.
The scheme was criticised by some as fuelling rapid growth in house prices without addressing the underlying issue of a lack of supply. The policy helped drive record profits in the new-build sector and housebuilders have lobbied to have Help to Buy reinstated.
Neil Jefferson, managing director at Home Builders Federation (HBF), said: “The only way to address the housing crisis is to reverse the steep decline in house building and build the homes the country needs.
“The social implications of this crisis are becoming more obvious but the economic consequences are now starting to be felt too. The failure to create a policy environment that supports delivery is now costing jobs, cutting GDP and reducing investment in local economies across the country.”
Around 230,000 homes were built last year, far below the Government target of 300,000.
The HBF warned that completions are on track to fall to below 120,000 in the coming years, which would halve the housing sector’s contribution to the economy from 2pc to 1pc of GDP.
A survey from the HBF, Travis Perkins and Close Brothers Property Finance found 93pc of smaller builders were struggling with planning permission issues, while nearly half have been stung by a significant rise in costs.
