Is Osborne’s ‘help to buy’ scheme helping the rich?

British Chancellor George Osborne

More than 1,750 couples earning over £100,000 a year were given government loans to buy a house, new figures reveal …reports Asian Lite news.

British Chancellor George Osborne
British Chancellor George Osborne

Under the government’s ‘help to buy’ scheme anyone who saves a 5 per cent deposit on a property will get a 20 per cent loan from the government so they can get a mortgage.

The programme was brought in to help first time buyers struggling to save enough cash to get on the property ladder.

However the scheme is helping some of the wealthiest families in the country, the government’s own figures showed this morning, says Daily Mail Online.

Overall, 1,758 help to buy loans were handed out to individuals or couples who take home more than £100,000 a year – despite them being in the top 10 per cent richest households in the country.

In addition, almost 500 of the couples earning over £100,000 who were given government help already owned a property.


According to Mail Online government officials insisted that the scheme was working well – pointing to figures showing almost half the loans to first time buyers went to those earning £40,000 or less.


However, this masks the fact that more than 30,000 loans were handed to households earning more than £40,000 a year – which puts them in the richest 30 per cent of earners in the country.
The average household income in Britain is £33,155, according to the latest official figures.

The government loans – which can be worth up to £120,000 – were also used to buy homes far more expensive than most families in Britain can afford. The average house price in the UK stood at just £277,000 in June and just £213,000 for first time buyers.


But, according to the latest  figures, some 625 homes worth more than £500,000 – double the average UK house price – were bought using government loans.
Overall, almost 15,000 homes worth more than £250,000 were bought using the loans, including 4,000 over £350,000.


George Osborne insisted that the scheme was ‘helping people achieve the aspiration’ of buying a home. He said: ‘Our Help to Buy schemes have now helped nearly 120,000 working people across the UK.’