"This is a powerful example of a housing policy that worked. It boosted supply, supported jobs and enabled hundreds of thousands of people to realise their dream of home ownership"
- Neil Jefferson - HBF
Help to Buy has generated £1.38 billion in returns for the Exchequer from fully repaid loans and interest payments, with the equity loan scheme currently producing more than £1 million a day, according to research from the Home Builders Federation (HBF).
The Payback Time report, drawing on government data, projects that the initiative could deliver a total positive return of more than £2 billion once all loans and interest are accounted for.
Across 181,437 fully repaid loans, the government received a 10.3% uplift on the original loan value, equating to £1.02 billion in returns. A further £358 million was generated from interest payments. Introduced in England in 2013, Help to Buy has supported 387,195 households into homeownership, including 328,346 first-time buyers.
The scheme was created in response to a shortage of mortgage finance following the global financial crisis. By offering shared equity loans of up to 20% (40% in London) on new-build homes, interest-free for the first five years, the initiative reduced deposit requirements and improved affordability. Loan repayment is calculated based on the property’s value at redemption.
HBF noted that Help to Buy, introduced alongside the National Planning Policy Framework, combined planning and demand-side policy to drive a doubling of housing supply over a decade. The research highlights wider economic benefits: the equity loan scheme supported £86 billion in economic activity, generated more than £10 billion in tax receipts, and sustained over 130,000 jobs annually at its peak.
The report also places Help to Buy in the context of historic government support for homeownership from the 1960s to 2023. Earlier measures included tax relief incentives and shared equity, guarantee, and equity loan schemes under both Labour (1997-2010) and the 2010-2015 coalition governments.
HBF emphasised that, unlike previous initiatives that cost the Exchequer without creating additional supply, or Right to Buy, which did not deliver new homes, Help to Buy produced a long-term return for taxpayers.
The federation called for further government action to support first-time buyers, citing the housing secretary’s commitment to young homeowners and the prime minister’s prior goal of increasing homeownership from 65% to 70%. HBF suggested a new targeted equity loan scheme “for a new generation,” partially funded by developer contributions, to allow buyers to secure a mortgage with a 5% deposit while stimulating new development and increasing homebuilding.
“Help to Buy has clearly delivered for both aspiring homeowners and the taxpayer,” said Neil Jefferson, CEO of HBF. “Nearly half of the loans have now been repaid, returning over £1 billion in profit on loan values alone, and more than £1.3 billion in total returns."
"This is a powerful example of a housing policy that worked. It boosted supply, supported jobs and enabled hundreds of thousands of people to realise their dream of home ownership. With affordability so constrained for prospective first-time buyers, it is frustrating that no support for home ownership is in place today."
"We need a new targeted scheme that will support young people, helping them overcome barriers to homeownership and ensuring the next generation can access affordable and sustainable mortgage finance.”
