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Call to scrap help to buy as figures reveal policy mostly benefits high income households

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Call to scrap help to buy as figures reveal policy mostly benefits high income households

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Published by Jon Land for 24dash.com in Housing and also in Central Government, Finance

London London

A member of the London Assembly has called on mayor Boris Johnson to lobby for the help to buy 2 scheme to be scrapped - after new Treasury figures revealed that the median income of those using the scheme in the capital is over £80,000.

More than twice the London’s median household income of £35,740, the figure puts the average help to buy customer in at least the top 20% of household incomes in the city.

The help to buy: mortgage guarantee scheme (help to buy 2) launched in October 2013 and sees the government offer lenders the chance to purchase a guarantee on mortgage loans where the borrower has a deposit of between 5% and 20%.

The Green Party's Darren Johnson AM said: “Help to buy is clearly helping estate agents to sell expensive homes to rich Londoners, and is contributing to a dizzying and damaging rise in house prices.

"Trying to defend it by saying the average prices aren’t as high as £600,000 shows how completely out of touch some people are from those on average household incomes in London.

“When there is such a dire need for genuinely affordable housing, this is a bad use of public money. The mayor should publicly lobby the government to scrap it.”

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