A house builder has recently reported boosted profits credited to the Help to Buy scheme stimulating the building market.
Pre-tax first half profits of Bellway house builders have jumped by 53% up to £158.9 million it has been reported.
This has had the benefit of boosting their shares by 56% to 25p per share.
This is because of an ability to vastly increase the amount of properties the company have been able to build has risen from 4,380 in 2009 to an estimated 7,500 this year. Its order books are £1.1 billion, 35% ahead of last year.
Over the last two years, it is said that Help to Buy has been one of the driving forces behind this increase. Ted Ayres of Bellway said that because of mortgage lenders offering very low interest rates, they are able to sell more homes.
Furthermore, the cost of building materials has apparently stabilised recently, adding to their profits.
The reports and perspectives of the controversial Help to Buy have changed so much and contradicted themselves so many times it is hard to form a solid opinion.
With ‘generation rent’ still unable to get onto the property ladder are the early fears about Help to Buy only boosting the more expensive house sales to people who are already rich enough to afford them?
The announcement by Bellway didn’t indicate who the demographic was who had been purchasing all these homes, whether they were buying in the upper reaches of the £600,000 price limit, or were less well off buyers seeking affordable housing.