Help to Buy has cross-party approval - and interest is coming from the targeted groups: young people and renters
George Osborne has launched the second phase of his flagship Help to Buy scheme, extending the availability of mortgages which require a small 5% deposit from only new-build homes to houses that are already on the market. YouGov finds the scheme to have wide approval, and to be attracting the targeted groups: the young and renters, who may find it difficult to break into the market.
Three quarters of the public (75%) have heard of the government’s Help to Buy housing scheme, and twice as many (49%) say it is “good - it allows people who would otherwise not be able to get onto the housing ladder to own their own home” as say it is “bad - it allows people that may not be financially responsible to borrow money they may not be able to pay back” (24%). Conservatives support the scheme the most (63%), however supporters significantly outnumber detractors in all of the three main parties.
George Osborne introduced the scheme “to make sure an entire generation doesn’t miss out on the reasonable aspiration to buy a home.” Indeed, the poll shows the scheme is most popular amongst the younger generation and those currently renting or living at home or at a friend's rent-free. 46% of 18-24 year olds and 40% of 25-39 year olds say they are ‘very’ or ‘fairly’ likely to consider using the scheme to buy a house already on the market, compared to around 27% of those aged over 40.
Additionally, 56% of those living rent-free (including in a relative or friend's property), 41% of those renting from a private landlord and 40% of those renting from a housing association would consider using the scheme, compared to around 30% of part or full home owners.
Nearly 7,000 reservations of new build homes were made using the first part of the scheme in its first four months, and the second part of the scheme will be introduced in January 2014. The government will make available £12bn, to guarantee part of the mortgages provided by lenders in case borrowers default – enough, it says, to support £130bn of mortgages.