Help to Buy Scheme Limited Effect on Housing Affordability, IFS Reports

The Institute for Fiscal Studies (IFS) reported that the Help to Buy scheme, introduced in England in 2013, primarily benefited higher earners in cheaper areas while having a limited impact on housing affordability. Approximately 20% of first-time buyer purchases in England were supported by the scheme at its peak in 2014-15. The scheme allowed for government-backed 20% loans on new build properties, yet it was criticized for pushing up house prices. The mortgage guarantee scheme associated with Help to Buy has been made permanent across the UK, while some schemes have closed to new applicants. This has implications for market dynamics in housing and mortgage availability.