Thousands of wealthy homeowners in Britain are receiving hundreds of million of pounds from public money under the Government’s scheme designed to help first-time buyers.
A staggering 5,545 homeowners earning more than £100,000-a-year have benefited from Help to Buy scheme which is aimed at helping people get on the housing ladder.
Data analysis also revealed that of the 5,545 homeowners earning more than £100,000-a-year, 1,287 of those already owned a property.
If householders earning above £100,000 received the same size loan as other groups on average, it would mean they are claiming at least £280m of public money in the past five years.
Richer households are likely to buyer more expensive homes, which could mean the true figure is much higher.
A staggering 5,545 homeowners earning more than £100,000-a-year have benefited from Help to Buy scheme which is aimed at helping people get on the housing ladder (stock image)
Richer households are likely to buyer more expensive homes, which could mean the true figure is much higher (stock image)
The Government’s assessment in 2016 of its own scheme found existing homeowners received an average loan of £52,833, higher than the £39,907 average for first-time buyers.
Help to Buy allows buyers to purchase a new-build property with just a five per cent deposit, yet critics claim the programme does not help those who require the most help and boosts house prices.
Labour argue the policy should be altered so that only first-time buyers and households earning less than £100,00 should be eligible for the scheme.
Since its introduction in 2013, one in ten Help to Buy loans have gone to households earning more than £80,000. A quarter has gone to those earning more than £60,000. And another quarter has gone to those who already own a home.
Polly Neate, CEO of housing charity Shelter, told The Independent: ‘Help to Buy has completely missed the mark, barely doing anything to help the first-time buyers it is targeted at, and nothing to help those most in need of an affordable home.
‘By inflating house prices and subsidising huge corporate pay outs it is actually making matters worse. Instead of pumping more public money into Help to Buy, the government should direct funding towards building genuinely affordable homes and intervene to lower the cost of land.’
Housing Minister Dominic Raab, said: ‘This Government is committed to helping more people get on the housing ladder, with the support of a range of low cost home ownership products.
‘Thanks to our Help to Buy: Equity Loan scheme the dream of home ownership continues to become a reality for thousands more households across the country.’
Help to Buy allows buyers to purchase a new-build property with just a five per cent deposit, yet critics claim the programme does not help those who require the most help and boosts house prices (stock image)