Help to Buy creates ‘risks’ for the taxpayer, MPs warn
The governments Help to Buy scheme designed to boost the housing market, creates “medium and long-term risks to the tax payer” according to MPs.
The Public Accounts Committee said the portfolio of mortgage loans would create a “heavy administrative burden”.
There was also question of whether it represented value for money for the taxpayer.
Kris Hopkins rejected the report, arguing that the plan had supported the economy.
The Committee looked at the first part of Help-to-Buy – the equity loan scheme.
The scheme is aimed at people who can afford a mortgage but struggle to get on the housing ladder due to the inability to raise a suitable deposit.
The government offers buyers of newly-built homes a loan worth 20% of the purchase price, provided they have a deposit of 5% and the property costs less than £600,000.
The Labour Chair of the Committee Margaret Hodge said that overseeing a portfolio of loans was new territory for the government that required “careful management”.