Andy Frankish, new homes director at Mortgage Advice Bureau (MAB), comments on the report published today by the National Audit Office (NAO) on the Help to Buy equity loan scheme:
“The need for greater evaluation of the impact made by Help to Buy equity loans should not overshadow a hugely positive message in today’s report: that the scheme is ‘improving access to mortgage finance and making mortgages more affordable to buyers, particularly first-time buyers.’
“It is no mean feat to have introduced a scheme of this magnitude so promptly with very few hitches along the way. The housing shortage calls for quick and decisive action, which is exactly what has been delivered with a visible impact on confidence in the construction sector.
“Looking ahead, the NAO is absolutely right to call for clarity on what will happen when the scheme ends in 2016. Builders, lenders and brokers can work together to make a real difference to the volume of new homes built and sold across the UK, which is vital to the wider market’s stability. With the election on the horizon, we must not lose sight of the need to promote long-term commitments to the new build market with or without Help to Buy.”