Is buying through Help to Buy always a cheaper option than renting?
The study, undertaken by Compare My Move, found that it takes young and first-time-buyers in this country an average of 12 months to save up the 5% deposit needed to use the Help to Buy Equity Loan scheme whilst privately renting a property. In comparison to the three years it would take to save the necessary 15% deposit, this will save first-time buyers over £10,000.
However, there is a growing level of discontent with Help to Buy, with developers accused of selling new-build homes through Help to Buy at hugely inflated prices.
Fresh data, compiled by reallymoving.com, shows that homes being sold under the government’s Help To Buy scheme are routinely overpriced by almost 10%.
Many experts believe that property firms are trying to cash in because they know first-time buyers who use Help To Buy can borrow much more money, and that is why a growing number of people are now opposed to Help to Buy.
According to a new poll of more than 2,000 people by property investment platform British Pearl, 31.5% did not support the scheme, designed to help people get a foot on the property ladder, with many believing it has actually made housing less affordable.
Of the third who were opposed to Help to Buy, 37.5% blamed it for property price inflation, while 35.8% argued the government should instead use the cash “to build more homes”.
More than a quarter – 26% – of those who disagreed claimed “it’s unnecessary and those who can’t afford to buy should rent” and 24.3% believe “the government shouldn’t interfere in the market”.
The damning poll also found Millennials were among the least likely to be in favour of Help to Buy, while older respondents were actually more likely to support it.
The study also revealed people in Norwich were the least likely to be in favour of the scheme, with just over half – 55.1% – in favour of it. However, in Bristol, more than three quarters – 75.9% – said they did support Help to Buy.
