What is Help to Buy and will Rishi Sunak bring it back for first-time buyers?

First-time buyers in the UK who are struggling to get on the property ladder could soon be offered more help from a government scheme that is rumoured to be returning. According to a report from The Times, Prime Minister Rishi Sunak is said to be drawing up plans to boost support for first-time home buyers by bringing back the Help to Buy: Equity Loan scheme.

With the difficulties facing new buyers today, from increased house prices to soaring interest rates, the Help to Buy equity loan helps first-time buyers purchase a new-build property with just a five percent deposit. Those eligible can borrow a loan amounting to 20 percent of the purchase price, or 40 percent in London, interest-free for five years.

The government scheme was first launched back in 2013 by then chancellor George Osborne. In October 2018, the government announced that the scheme would close to new entrants in October 2022, with those who have applied able to make use of the loan up until March 31, 2023.

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Over the past decade the government has issued more than 375,654 Help to Buy loans with a total value of £23.6 billion.

According to The Times, the move to bring the Help to Buy equity loan back was discussed before the spring budget, but was not taken forward amid fears that it would prove inflationary.

Three government sources have reportedly said a new-buyers’ support scheme was “back on the table” and could form part of Jeremy Hunt’s autumn statement.

“We cannot go into the next election without an offer for first-time buyers,” one minister told The Times. “We all know that homeowners are more likely to vote Conservative and we cannot cede this ground to Labour.”

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