There is no doubt that homeowners are anxious to see house prices rise and their property values increase so that they begin building equity once more.  It is with the equity build in property that homeowners see returns on their investment in property.  The boost expected to the housing market from the new Help to Buy scheme may have an alternative result according to some experts rather than assisting buyers into new homes. 

While the scheme may assist buyers into newly constructed homes with deposit assistance, the end result may boost house prices to the level that first time buyers will be again shut out once the scheme ends.  Those not qualifying for the scheme will find house prices rising when deposits are still difficult to obtain.

A study by the Chartered Institute of Housing (CIH) revealed that the cost of buying or renting a home increased in the last ten years by 70% and 30% respectively.  The new scheme according to the CIH will push the cost even higher. 

Last month the Treasury select committee issued a warning that the scheme could have consequences that will prove daunting for first time buyers. 

Grainia Long, CIH chief executive remarked, “Living in an affordable, decent quality home – whether that's through owning or renting ­– is becoming a pipe dream for an increasing number of people. These figures show just how dysfunctional our housing market has become. We share the concerns expressed by MPs last week that the government's new Help to Buy scheme risks increasing house prices while doing little to boost the number of homes actually being built.

“What we need to see from the government is direct investment in building new houses, which would help make things more affordable for everyone.”