New analysis questions whether the scheme expanded access or simply accelerated buyers already in the market
The Help to Buy equity loan scheme has come under fresh scrutiny after new analysis suggested it disproportionately benefited higher-income borrowers, prompting renewed questions over whether it expanded access to homeownership or simply accelerated buyers already in a position to purchase.
The findings indicate that many of those who used the scheme may have been able to buy without support, raising questions about whether it materially widened access to the housing market.
Brokers, however, say that view risks overlooking the conditions the scheme was introduced into.
Rhys Edwards (pictured top), mortgage consultant at Brooks Financial, said Help to Buy played a critical role in restoring confidence following the credit crunch, particularly in the new-build sector.
“Help to Buy was essential when it was first introduced. Coming in the aftermath of the credit crunch, it gave lenders the confidence to lend on new-build properties and helped buyers bridge the gap between what they had saved and what was required to purchase a newly built home.”
At the time, higher deposit requirements meant many buyers were unable to access new-build properties without additional support.
“The scheme made many properties achievable for clients who did not have the level of deposit banks were demanding for new builds at the time. For my London clients in particular, the 40% equity loan proved transformational, making home ownership possible where it otherwise would not have been.”
Edwards said the scheme’s primary effect was to bring forward homeownership rather than fundamentally expand the pool of buyers.
“In my view, Help to Buy accelerated access to home ownership. Many buyers simply did not have the 25% or even 15% deposits typically required, and the scheme enabled them to purchase much sooner than would otherwise have been possible.”
That distinction is now central to the debate. If schemes primarily accelerate demand rather than broaden access, their long-term impact becomes more limited.
Since the scheme ended, lenders have moved to fill part of that gap, particularly through higher loan-to-value lending.
“Since the scheme ended, lenders have stepped up. They are now supporting first-time buyers and new-build purchases with lending of up to 95%, including on flats, helping to bridge the gap left by Help to Buy’s withdrawal.”
The shift has reduced the immediate need for a direct replacement, but has also highlighted some of the longer-term challenges linked to the equity loan structure.
“In the current market, however, I do not believe a direct replacement scheme is necessary. One of the challenges we now see is that some clients became stuck trying to repay their Help to Buy loans. After the initial five-year period, a number have struggled to raise the funds needed to settle the loan due to insufficient equity in their property.”
The debate now centres on whether future support should focus on expanding access to homeownership, or risk repeating a model that primarily brought forward demand.
