HUNDREDS of first-time buyers bought a home through the government's Help to Buy equity loan scheme in Bournemouth, Christchurch and Poole last year, figures reveal.
However, housing campaigners claim the scheme is “sticking a plaster” on the failure to build enough homes nationally, while doing nothing to help renters with no savings.
Until March 31, the scheme allowed buyers to borrow up to 20 per cent of the value of a new build home – rising to 40 per cent in London – provided they paid at least a 5 per cent deposit and the home cost no more than £600,000.
Ministry of Housing, Communities and Local Government data shows 200 loans were given to first-time buyers in Bournemouth, Christchurch and Poole using the scheme in the year to March – five fewer than the previous year.
They were among 226 households in the area which benefitted from the scheme, meaning 88 per cent of the loans were handed out to people buying their first home.
Across England, £4 billion worth of Help to Buy loans were handed out in 2020-21, when more than 55,600 households benefitted from the scheme – a record high.
More than four in five were first-time buyers.
But Priced Out, which campaigns for affordable house prices, said the fact so many people have to borrow money to buy their first home shows a “failure” to control house price inflation.
Anya Martin, director, said: “Prices have risen faster than incomes for decades now, and all because we have failed to meet higher demand with higher supply.
“The government is not doing enough to ensure more people can buy their first home.
“They hold the levers to stabilise or bring down house prices, but instead of allowing more homes to be built, they keep pumping up the market with more cash.”
Housing charity Shelter said the government must focus on doing more for the "huge" number of people across the country who are closer to homelessness than home ownership.
Housing Secretary Robert Jenrick said: “Over 55,000 households bought their home with the support of Help to Buy equity loan last year: a record year for the scheme, which is helping young people and first-time buyers feel the sense of pride and achievement that comes with owning your own home.”
He added the government is doing everything it can to make home buying a “affordable and realistic ambition”, through various schemes, including Help to Buy.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here