New stats: Barely 500 Burnley and Pendle home-buyers have used controversial Help to Buy scheme since 2013 launch
Allowing both first-time buyers and existing owners to put down a 5% deposit on their new home and use a government equity loan to access more affordable mortgage rates, the Help to Buy scheme sees the government lend buyers 20% of the value of the property under the value of £600,000.
However, according to research from housing charity Shelter has shown that the scheme only really helps the better-off, shutting out renters who struggle to access its benefits as a result of their inability to reach the minimum cut-off for savings. With a Help to Buy ISA, the Government adds 25% to the funds saved in the in buyer's account at the point the property is purchased.
The minimum they will add is £400, meaning the buyer needs to save between £1,600 and £3,000 - a figure out of reach for vast swathes of renters trapped in expensive accommodation with Polly Neate, chief executive at Shelter, saying: "Millions of people are stuck in the rent trap, paying well over the odds to put a roof over their head with little hope of saving anything. While Help to Buy ISAs may help a lucky few who are already better off, for most renters it will bring them no closer to a stable home."