Government’s Help to Buy housing scheme increasingly benefiting higher earners

The government’s multi-billion pound scheme that helps people to buy a home is giving more taxpayer funded loans to higher earners.

‘Help to Buy’ is a scheme aimed at helping those struggling with money, however analysis shows that the average wage of people receiving loans has risen dramatically.

Data shows the average household income of those receiving help from the scheme stands at £50,000.

This rises to £72,000 when you reach the capital, in London.

The result of these findings is bound to spark questions around the value of the scheme for those truly earning low amounts. Help to buy has already experienced criticism for raising house prices and failing to do one vital job; help those whom need it.

The outline of the scheme is to hand out money so buyers can handle a loan to purchase a property with a 5% deposit.

The earnings of the average Help to Buy loan recipient are now almost £10,000 higher than when the scheme was introduced in 2013 – a rise of 35 per cent.

The UK has an average household income of £25,000.

Some think household incomes should be capped when applying for a help to buy loan, to help public money be directed toward genuine low and middle incomes.

Recent figures have revealed that 6,200 homes with incomes larger than £100,000 have benefited from tax payer funded loans.

A spokesperson for the Department for Housing, Communities and Local Government said: “Our Help to Buy scheme has assisted over 440,000 people buy a home of their own since 2010, with a majority of households having an income of £50,000 or less.

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