Labour politicians attacked the coalition government this week with claims that their flagship Help to Buy scheme was a “flop”.
Backing up their claims with data, Labour politicians claimed that the Equity Loan scheme has failed to help people in and around the London area.
20 London constituencies have seen no aid from the Help to Buy scheme, with not one person buying a single property in them. These failed areas include Tottenham, Brent Central, Tooting, Shoreditch, Lewisham West and Hackney South.
There are also several areas that have only experienced one property sale under the scheme, and some others have had fewer than five, showing that lack of scheme use is wide spread around the capital.
This would counter other complaints that the Help to Buy scheme is helping to generate a housing bubble around London by driving up house prices, something which could have affected the economy and market of the entire country.
The scheme has an upper limit of £600,000 which is far too high in a lot of peoples’ opinions, generating criticism. It is supposed to be helping first time buyers who cannot get onto the property ladder, but those who can afford a 5% deposit on a £600,000 property should be able to afford a non-government aided deposit on a cheaper house.
Labour’s Shadow Minister for London, Sadiq Khan, argued that “Those benefiting most from this Government are foreign oligarchs who can pay extortionate London prices, not ordinary Londoners who can’t afford to buy their own homes,” it is reported.