The government’s ‘Help to Buy’ scheme is facing the axe after claims it is pushing house prices up and only helping wealthy people add extensions onto their existing homes.

Government ministers are said to be planning a ‘fundamental review’ of the policy, which was introduced in 2013 with the idea to help first-time buyers get on the property ladder.

The review could see it be replaced with a scheme to better help the less affluent families the scheme was brought in to assist in the first place.

Help to Buy has helped 136,700 people get onto the property ladder (Picture: Getty/Caiaimage)

Research last week revealed that one in five households which had used the scheme had upgraded their home, rather than bought a new property, the Sunday Telegraph reports.




Since it was launched, almost 170,000 families have taken advantage, of which 136,700 were first-time buyers.

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The Government has provided more than £8.9 billion so far, and an additional £10 billion has also been pledged.

Sam Dumitriu, Adam Smith Institute’s head of research, said: ‘The fundamental problem is a lack of supply, but Help to Buy does not address that.

‘It doesn’t make sense for taxpayers to be paying for something that is going to people who are well off.’

But one in five of households who used the scheme upgraded their existing home rather than buy a new one (Picture: Getty)

The government is currently under pressure to ensure the policy remains financed beyond 2021, when the current tranche of funding will run out.

Minsters are reportedly considering a temporary extension to the scheme to reduce the ‘disruption’ that could be caused if property developers and mortgage lenders are only given three-years notice.

The average cost of a home bought through the scheme outside of London was around £250,000, and the average loan was around £52,800.

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