Help to Buy cause rise in FTB property prices

Michael Lloyd

October 8, 2019

The Help to Buy scheme has caused a rise in first-time buyer property prices since it was introduced, estate agency Springbok Properties has found.

The average cost of a first-time buyer property has increased by 32.8% since 2013, the year when Help to Buy came into effect.

Shepherd Ncube, founder and chief executive of Springbok Properties, said: “Help to Buy was introduced by the previous government with good intentions – to assist would-be homebuyers in their first step onto the property ladder.

“However, it seems that whilst around 200,000 buyers have indeed been supported, the unintended consequence in most areas has seen an above average hike in prices driven by the demand that Help to Buy has created.

“First rung homes are supposed to be more affordable, but we’ve seen the average price paid by a first-time buyer accelerate to similar levels as the wider market.

“Not only has this made it more difficult for today’s aspirational homeowner, but perhaps some tax-payers might question the wisdom of using their money to fuel house prices even further?”

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