Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment he has made of the potential impact of changes in the rate of inflation on homeowners on the Help to Buy Equity Loan scheme.

The changes in the rate of inflation and the impact this will have on homeowners is of great importance. Help to Buy customers pay no interest for the first five years of their loan. Interest fees that begin in year 6 start at 1.75% and increase each year by CPI + 2%. Affordability assessments are carried out by both the main mortgage provider and our Help to Buy Agents at the outset of the loans. These checks assess and stress-test the borrower’s long-term ability to meet their mortgage repayments and future fee payments. We are, however, monitoring the situation closely and will continue working with Homes England ensure we have the correct policies in place to support homeowners.