A new analysis by the Institute for Fiscal Studies (IFS) reveals that the UK’s Help to Buy scheme disproportionately benefited higher-income households, while lower-income families saw limited advantages. The government-backed program, designed to assist first-time homebuyers with smaller deposits, ultimately widened housing inequality according to the report.
Launched in 2013, Help to Buy provided equity loans covering up to 20% of a new-build property’s value. While the program helped over 375,000 households purchase homes, IFS researchers found the average beneficiary had a household income of £51,000 – significantly above the national median of £30,000. “The scheme’s structure inherently favored those already closer to homeownership thresholds,” noted one housing analyst familiar with the findings.
Government officials maintain the program achieved its core objective of stimulating new construction. However, independent economists point to rising property prices during the scheme’s operation, which may have offset benefits for lower-income participants. The Treasury is currently reviewing successor programs with an emphasis on affordability.