Buy to Let Scheme

Prime Minister Theresa May has recently announced that the government will find an extra £10bn for the Help to Buy scheme. The extra money will allow first time buyers get on the property ladder with as little as 5% as a deposit.

It is expected that the funding will help 135,000 people purchase a property but critics have said it would push up house prices.

The plans are likely to be outlined in more detail in the Budget on 22nd November and so far May has given out no details on the source of the funding.

The announcement is a move to win back the vote of younger voters who have switched to supporting Labour. Currently, according to the Local Government Association just 20% of those aged 25 own a property. This is down from 46% in 1997.

The first phase of Help to Buy began in April 2013 in England and offered a 20% equity loan for new build properties worth up to £600,000. When the property is sold, the government reclaims the loan, making a profit if the value has risen. 

According to the Home Builders Federation, more than 200,000 people have been able to buy a newly-built property in the past four years thanks to the Help to Buy scheme.