Stella’s News

Stella the Frenchie - views on the property market

Target market for Help to Buy now blame the scheme for inflating house prices – Source: Property Industry Eye

The main demographic of the Government’s Help to Buy scheme seems most opposed to it, research suggests.

An online poll of 2,000 adults by property lender British Pearl, found that a third were against the scheme, saying it inflates house prices.

Just 59.8% of 16 to 24-year-olds supported it, along with 66.7% of 25 to 34-year-olds, which is typically the age bracket of first-time buyers that the scheme is meant to support.

However, more of those in the older age bracket were supportive, with 70.1% of 45 to 54-year-olds and 73.1% of the over 55s backing the scheme.

It is not clear whether respondents were first asked if they even knew what the Help to Buy scheme was, but 37.5% blamed it for house price inflation, while 35.8% argued the Government should instead use the cash “to build more homes”.

A quarter claimed “It’s unnecessary and those who can’t afford to buy should rent” and 24.3% believed “The Government shouldn’t interfere in the market”.

James Newbery, investment manager for British Pearl, said: “While there were certainly good intentions behind Help to Buy and it has helped people on to the ladder, our poll proves a significant portion of Brits are still to be sold on the scheme.

“Its merits are either not being communicated effectively enough to ‘Generation Rent’ or people are beginning to believe the scheme has become part of the problem rather than the solution.

“Public opinion is becoming jaded by a persistent lack of stock and ever-increasing property prices, so something clearly needs to be done to address Britain’s housing crisis and the country’s perception of how the Government is handling it.

“Millennials — who form part of the key demographic Help to Buy was designed to give a leg up to — clearly still have a bone to pick with what’s been laid on the table for them in terms of housing options.”