Help to Buy sees 10% returns for tax payers

New analysis of household repayments under the Help to Buy equity loan scheme shows that the scheme has seen home owners repay their government equity loans with an average uplift of more than 10% when compared with the original loan value.

A new report, The Road to Redemption, details how the first 49,000 equity loan redemptions generated a £232 million return on investment as a growing number of home owners continue to pay back the government.

The research, conducted by the Home Builders Federation, reveals that:

· The government has received £2.481 billion in repayments of loans with an original value of £2.249 billion, a return of £232 million (10%)

· Up to March 2020, 49,020 Help to Buy equity loans had been fully redeemed, 18% of all the loans issued up to that point

· 60% of equity loans issued in the first two years of the scheme (2013/14 and 2014/15) were fully repaid by March 2020

· During 2019/20, the Exchequer received £941 million in repayments of loans with an original value of £875 million, an increase of £66 million

The report also highlights the link between the introduction of the scheme and the increase in housing supply seen in England since 2014. By …