“Cynically, you could conclude that this is a political ploy to incentivise younger people to vote with a policy that resonates, announced closer to a general election,” he added.
The scheme has attracted significant criticism over the years, with some suggesting developers and the government have been the only ones to benefit from it.
Previously, brokers raised concerns that some borrowers will be unable to pay off their loans against a backdrop of rising rates and a cost of living crisis.
A House of Lords report published last year found the scheme had pushed up house prices in England and failed to “provide good value for money” for the taxpayer.
Tweak it
However, others argue that the scheme has played a vital role in getting first-time buyers onto the property ladder.
Rohit Kohli, operations director at The Mortgage Shop, said: “Help to Buy supported thousands of people into their first home and it's welcome news that it's being considered again after being completely overlooked in the budget.
“However, this isn't the painkiller to the first-time buyer headache - it has to be part of a wider range of solutions including looking at more innovative ways to help renters who pay thousands a year get through affordability hurdles.”
Similarly, Chess Mortgages founder, Bob Singh said Help to Buy needs to return “but maybe in another guise”.
“Rather than the bureaucratic old system that favoured new build developers and fuelled a rise in prices, why not limit it to just 10 per cent and keep an orderly market?
“The 10 per cent would be an interest-free loan with no payments. With renters facing difficulty in raising deposits, this would work well by helping all first-time buyers get on the ladder by opening it up to second-hand properties,” Singh said.
He added: “The government could link this with lenders willing to lend high loan-to-values to renters who can show a good solid track record in meeting rental payments.”
jane.matthews@ft.com
