The Government’s flagship Help to Buy scheme was designed to help first-time buyers onto the property ladder—but a new report suggests many of the biggest benefits went to higher earners instead.
Research from the Institute for Fiscal Studies (IFS) has found that while the scheme supported large numbers of home purchases, it made only a limited impact on overall affordability and social mobility.
Launched in England in 2013, Help to Buy aimed to assist buyers who lacked financial support from family or friends. It did this through two key measures: a mortgage guarantee scheme allowing purchases with a 5% deposit, and an equity loan scheme offering government-backed loans of up to 20% on new-build homes—rising to 40% in London for part of the programme.
At its height in 2014/15, the scheme helped fund around one in five first-time buyer purchases in England, becoming one of the most significant housing support programmes of the past decade.
But according to the IFS, its impact was uneven.
One of the main limitations was its focus on new-build properties, which are relatively limited in supply in many parts of the country. In high-cost areas such as London and the South East, this restricted access for many would-be buyers. Meanwhile, those in cheaper regions—who were often on higher incomes relative to local house prices—were more likely to benefit.
The report also highlights the role of mortgage lending rules. Many buyers using the scheme were already close to their borrowing limits, meaning Help to Buy did not necessarily transform affordability in the way intended. In some cases, buyers still needed additional support from family members to complete purchases.
Critics have long argued that schemes like Help to Buy risk inflating house prices by boosting purchasing power without increasing housing supply at the same pace. Supporters, however, say the initiative helped thousands of people buy their first home while also supporting the construction sector and encouraging housebuilding.
The policy landscape has since shifted. The equity loan element of Help to Buy has now closed to new applicants in England and Scotland, with Wales expected to follow. However, the mortgage guarantee scheme remains available across the UK.
The debate around the programme reflects a wider challenge facing policymakers: how to support first-time buyers in a housing market where affordability pressures continue to outpace incomes for many households.
