A flagship government program designed to assist first-time homebuyers in England disproportionately aided higher-income individuals in more affordable regions, according to a new analysis from the Institute for Fiscal Studies (IFS).
Launched in 2013, the Help to Buy initiative aimed to bridge the gap for prospective homeowners lacking access to family financial support by offering government-backed loans for deposits and improving mortgage accessibility. However, the IFS report concludes the policy had a "limited impact" on improving social mobility and housing affordability overall.
"Help to Buy made only a limited difference to housing affordability," the study states, noting that its benefits were skewed toward those who could already afford higher-priced homes.
The research highlights that the scheme's effectiveness was constrained because it was primarily applicable to new-build properties, which are scarce in many areas. Consequently, it proved less useful in high-cost regions like London and the Southeast, where fewer eligible homes were available.
"Help to Buy policies can help first-time buyers get on the housing ladder, in theory, but can also push up house prices," explained Bee Boileau, a research economist at IFS.
Critics have long argued that the program inflated property prices by enabling increased spending, while proponents credit it with facilitating homeownership and stimulating construction. The Home Builders Federation defended the scheme, citing its role in doubling housing supply and creating thousands of jobs post-implementation.
With the equity loan component now closed in England and Scotland—and set to end in Wales this September—the debate over its legacy continues. A government spokesperson noted that while no new Help to Buy program is planned, an ongoing evaluation and a separate permanent mortgage guarantee scheme aim to support future buyers.
Shadow housing secretary James Cleverly acknowledged the policy "gave many thousands of people the chance to realise the dream of homeownership," underscoring the complex trade-offs between accessibility and market effects in housing policy.