Help to Buy Mostly Helped High Earners, UK Think Tank Says

The "Help to Buy" scheme in England, which included a mortgage guarantee and an equity loan for new build properties, aimed to assist individuals without access to funds from friends or family. However, the IFS research suggests it did not significantly improve housing affordability, partly because it was restricted to new builds, which are less common in many areas. The study also found that the more a buyer earned, the more the scheme helped, increasing maximum affordable prices most for those who could already afford higher prices.Critics of the scheme argued it may have pushed up house prices by enabling buyers to spend more. While defenders stated it helped many achieve homeownership and boosted housebuilding, the IFS concluded that its overall impact on affordability was limited. The equity loan components of the scheme are now closed to new applicants in England, Scotland, and soon Wales, though a mortgage guarantee scheme remains permanent across the UK.