Help to Buy has raised house prices in England, the report said
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The government is £ 29bn Purchase Help Scheme has raised house prices in England and has failed to “provide a fair value for money” to taxpayers, according to a report by the House of Lords published Monday.
The money spent on the project would have helped to bring back the money that went down in England public housing, said the report authors, who serve on the Lord’s Construction Committee.
“The plan, which will have cost £ 29bn by 2023, is raising prices beyond the cost of subsidies in areas where it is most needed. . . This money can be put to good use in building houses, ”the report said.
Help to Buy was designed to increase home ownership by providing credit to consumers. However, it has been criticized as a development aid that does little to address the lack of really affordable housing.
Real estate development has declined by nearly 500,000 homes since 2000, according to a statistical analysis conducted by Shelter Housing Corporation.
“Help to Buy has its advantages, especially outside of London. But London is a much sought-after place, it has gone up in price. That is the problem,” said Baroness Neville-Rolfe, chair of the committee.
Nearly 340,000 homes have been purchased on equity loan since Help to Buy was established in 2013, a large number by first-time buyers. At the same time the share price of the leading builders including Persimmon, Barratt Houses and Taylor Wimpey has nearly tripled.
Developers are defending the system, saying it has helped boost the number of homes built and increased access. “Since its inception in 2013, Help to Buy has been a major contributor to home improvement,” said David O’Leary, program director at Home Builders Federation, a corporate organization.
The plan now pays money to the Treasury, he added, “by repaying about 10 percent from the 70,000 loans that were previously repaid by homeowners”.
The Lords Committee has presented a number of proposals to address the housing crisis in the country, urging the government to change its planning plan, assist small-scale builders and provide funding for new housing and training for construction workers.
The government released a white paper in August 2020 stating main goals its purpose is to soften the Byzantine system, which is often composed of sclerotic. This would be beneficial for small and medium-sized builders, who find it difficult to run a long, expensive process.
SME builders account for only 10 per cent of new homes built in England today, down from 39 per cent in the late 1980s, according to the report, which said strengthening their numbers was essential to tackling the problem.
But the plan was put on ice by Michael Gove, who replaced Robert Jenrick as house secretary last year. He is expected to showcase the downloads that have been downloaded as part of the upgrade process this year.
“Uncertainty over future planning and delays in planning have led to ‘serious problems’ in the construction industry and have caused builders and planners a bit confused,” said the report, which is based on evidence from housing companies, charities, think tanks. as well as students. .
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