Help-to-Buy scheme delivered ‘very high value for money,’ review finds

Audit findings will boost the case of those pushing for Labour to create its own version of the scheme. Photograph: Martin Argles/The Guardian View image in fullscreen Audit findings will boost the case of those pushing for Labour to create its own version of the scheme. Photograph: Martin Argles/The Guardian Help-to-Buy scheme delivered ‘very high value for money,’ review finds Exclusive: George Osborne’s programme to reduce costs for first-time buyers delivered £25bn in social value in UK last year George Osborne’s scheme to reduce costs for first-time buyers represented “very high value for money”, according to a government review, bolstering the case of senior government figures who have been arguing to resurrect the idea. An official audit of the Help-to-Buy programme has calculated it provided £25bn of social value to the UK in the last financial year, despite criticisms it was overly expensive and only served to inflate house prices. The findings will boost the case of those, including the housing minister Matthew Pennycook, who have been pushing behind the scenes for Labour to create its own version in a bid to boost home ownership among young voters. Sources say Pennycook and the former housing secretary Steve Reed advocated strongly for such a move but were ultimately overridden , Rachel Reeves, who wanted to focus more on boosting housing supply. The report found: “The Help-to-Buy scheme supported expanded home ownership, particularly in already affordable areas. Housebuilder Crest Nicholson warns of annual loss in ‘subdued’ property market “For some people, it helped them on to the housing ladder sooner or enabled them to buy when they might not otherwise have been able to afford to do so. “For others, it supported people to skip a rung on the housing ladder and buy a larger or more expensive home. On this basis, the Help-to-Buy scheme delivered its core aim of supporting home ownership.” The report did not take into account the effect on house prices, but it does rebut a central Treasury argument that it was an expensive way to boost home ownership and expand the supply of new houses. It added that more than 387,000 people bought their own home through the scheme, more than 328,000 of whom were first-time buyers. Nearly half of customers said they could not have bought a home without the scheme. A government spokesperson said: “There are no current plans to introduce a new Help-to-Buy scheme. “But it’s important to learn what went well and what went wrong with the previous scheme, which is why we undertook a robust evaluation, as is normal for all major programmes.” Both the prime minister, Andy Burnham, and his predecessor Keir Starmer have prioritised new housebuilding as they seek to tackle the country’s housing crisis.