Help to Buy Scheme
(asked on 12th February 2020) - View Source
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, if he will publish the (a) projected annual net costs of Help to Buy from its inception until 2021-22 as set out in the original business case, (b) actual annual net costs from inception until 2018-2019 and (c) current projected net costs until 2021-22.
The following answer sets out Capital Departmental Expenditure Limits (CDEL)?forecast expenditure of the Help to Buy: Equity Loan scheme, as set out in published Budget reports.? It includes CDEL financial transactions only, as the primary cost associated with the scheme.? It does not include running costs.?
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Help to Buy: Equity Loan is a demand-led scheme: the uptake is driven by the market.? Budget forecasts are therefore revised?regularly in light of?the most recent market information and estimated demand for the scheme.
It would not be appropriate to set out annualised net forecast expenditure or costs because they are not reflective of the actual cost and return to government for the scheme. In particular, the annual net cost amount does not fully account for the equity element of the homes which is held as an asset.
For the reasons set out above, the Department does not set out annual net costs for Help to Buy: Equity Loan. Annual cost and income figures in relation to the scheme are set out in the Annual Report and Accounts of Homes England (formerly Homes and Communities Agency) for the financial years 2013-14 to 2018-19.
The figures published in the Budget reports are:
2013 Spring Budget Report
This contains announcement of scheme from 2013 to 2016.
page 65, page 71 Table 2.6 (£ million)
Help to Buy: Equity Loan | 2013-14 | 2014-15 | 2015-16 | total |
| £1,150m | £1,430m | £1,550m | £4,130m |
2014 Spring Budget Report
This contains the announcement of extending the scheme to 2020?(paragraphs 1.140, 2.15). ?
page 62, Table 2.5 (£ million)
| 2014-15 | 2015-16 | 2016-17 | 2017-18 | 2018-19 | total |
Help to Buy: Equity Loan | 0 | 0 | £1,700m | £1,750m | £1,800m | £5,250m |
2015 Spending Review Autumn Statement
page 42, paragraph 1.146 part 4? This contains the announcement of extending the scheme to 2021, along with the new London Help to Buy scheme.
2016 Spring Budget Report? https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/508193/HMT_Budget_2016_Web_Accessible.pdf
page 42, paragraph 1.105 This contains an update on scheme performance.
2017 Autumn Budget Report
This contains the announcement of the additional £10 billion.
page 25, Table 1.9 ?(£ million)
Help to Buy: Equity Loan | 2017-18 | 2018-19 | 2019-20 | 2020-21 | total |
| £1,895m | £2,870m | £3,325m | £3,780m | £11,870m |
2018 Autumn Budget Report
Contains the announcement of the new scheme from 2021 to 2023.
page 27, Table 1.8 ?(£ million)
Help to Buy: Equity Loan | 2020-21 | 2021-22 | 2022-23 | total |
| £170m | £4,065m | £4,605m | £8,840m |