A government review has concluded that the Help to Buy programme delivered £25bn in social value to the UK in the last financial year and represented “very high value for money”. The assessment could strengthen arguments among some Labour figures for bringing back a version of the scheme.
The review said Help to Buy expanded home ownership, particularly in areas where homes were already more affordable. It found that the programme helped some people buy sooner, or buy when they otherwise might not have been able to afford a home, while allowing others to purchase a larger or more expensive property.
More than 387,000 people bought homes through the scheme, including over 328,000 first-time buyers, according to the report. Nearly half of customers said they could not have bought a home without its support. The review said the scheme had achieved its central aim of supporting home ownership.
The assessment did not consider the programme’s effect on house prices. Help to Buy has faced criticism that it benefited people who would eventually have bought homes without assistance and contributed to rising prices. The Institute for Fiscal Studies previously found that much of the benefit went to higher earners, particularly outside London and south-east England.
The findings have added to internal discussions about whether Labour should create its own version. The Guardian reported that housing minister Matthew Pennycook and former housing secretary Steve Reed supported such a move, while Chancellor Rachel Reeves preferred to concentrate on increasing housing supply. Reed was understood to favour targeting people unable to afford a home without help.
A government spokesperson said there were “no current plans” for a new Help to Buy scheme, but said ministers wanted to learn from the previous programme through a robust evaluation. The government has instead focused on supply, including a pledge of £39bn for social and affordable homes and planning reforms intended to encourage construction.