Government backed home ownership schemes are most likely to benefit wealthier buyers, a report published by the Social Mobility Commission has shown.
The report, carried out by researchers at the London School of Economics, reveals that many low cost home ownership schemes are out of reach for almost all families on average earnings.
Those benefitting from schemes such as Help to Buy earn one and a half times more than the national working age median outcome.
Around 60% of first-time buyers claim they intended to buy a property regardless, but the scheme merely enabled them to buy a better property.
Alan Milburn, chair of the Social Mobility Commission, said: ‘While it is welcome that the government is acting to help young people get on the housing ladder, current schemes are doing far too little to help those on low incomes to become home owners.”
Only 19% of Help to Buy equity loan completions to date were for homes worth less than £150,000.
The report recommends more advice and guidance to households without a history of ownership to help manage risks and expectations.
Milburn furthered: “The intent is good but the execution is poor. Changes to the existing schemes are needed if they are to do more to help more lower income young people and families become owner-occupiers.
“Without radical action, particularly on housing supply, the aspiration that millions of ordinary people have to own their own home will be thwarted.”