“Help to Buy mess as taxpayers subsidise thousands of homes for couples earning more than £100,000”

“Thousands of wealthy families are taking advantage of a taxpayer scheme designed to help struggling first-time buyers get on the housing ladder.

More than 6,700 households with incomes over £100,000 have bought homes using Help to Buy, according to the government’s own figures.

The scheme provides taxpayer cash to people seeking a mortgage. But despite its original aim to help people who could not afford big deposits, nearly one in 20 households with support have six-figure incomes.

And families with incomes of £50,000 or more have now received 40 per cent of loans, according to the report by the Ministry of Housing, Communities and Local Government.

Of the families who used the scheme, 136,700 were first-time buyers. A fifth of families using the scheme were not first-time buyers.

There is no maximum income on the Help to Buy scheme, which applies to new-build homes.

The scheme allows house hunters to purchase new-builds worth up to £600,000 using deposits of only 5pc – or £30,000.

The Government loans up to another 20pc interest-free for five years – or £120,000. In London, the taxpayer loan can reach 40pc of the value of the property – or £240,000.

When the house is sold, the government takes the same proportion of the sale price. If it goes up, the government makes money. If it goes down, the taxpayer makes a loss.

Campbell Robb, Joseph Rowntree Foundation chief executive, said a lack of cash invested in affordable housing meant more pressure on families forced to rent.

A government spokesman said: ‘The majority of those using our Help to Buy Equity Loan scheme had household incomes of £50,000 or less.’ “

http://www.dailymail.co.uk/news/article-6068919/Help-Buy-mess-taxpayers-subsidise-thousands-homes-couples-earning-100-000.html

2 thoughts on ““Help to Buy mess as taxpayers subsidise thousands of homes for couples earning more than £100,000”

  1. “A government spokesman said: ‘The majority of those using our Help to Buy Equity Loan scheme had household incomes of £50,000 or less.’”

    When you hear this you need to remember that “Majority” is not the same as “Most” – it literally means > 50%, whereas “Most” might mean (say) > 80%.

    So when the Government says:

    “The majority of those using our Help to Buy Equity Loan scheme had household incomes of £50,000 or less.”

    this is exactly the same as saying:

    “Up to 50% of those using our Help to Buy Equity Loan scheme had household incomes of more than £50,000”

    It’s just that the second version doesn’t sound nearly as good for the Government.

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  2. There are only two possible conclusions we can draw from this. Either:

    A. The Conservative Government is utterly and hopelessly inept, creating policies with holes so large that you can drive a Rolls Royce through them rather than ensuring that the benefits went only to those who deserved them, and mistakenly frittering away the austerity savings that they have nastily taken from the least well off in our society rather than using it as the claimed to reduce the national debt; or

    B. The Conservative Government knew what it was doing and created this policy in order to funnel money to their friends (who were perhaps tipped off about the opportunity) and the Tory voting demographic to keep them voting Tory.

    Either way, just HOW IRONIC IS THIS – TAKING EXISTING BENEFITS FROM THOSE WHO DESPERATELY NEED THEM AND THEN TO BE SO INEPT THAT THEY USE THIS MONEY TO FUND A DIFFERENT BENEFIT TO THOSE WHO DEFINITELY DON’T NEED THEM.

    Conservatives – funding the undeserving few whilst starving and making homeless the deserving many.

    Like

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