phil spencer help to buy

Is the Help to Buy scheme worth it? Property expert Phil Spencer reveals his thoughts

The Location, Location, Location host shares his expert property advice

Deputy Online Editor
May 26, 2021

The Help to Buy equity loan scheme has helped over thousands of homebuyers buy a house ever since its launch in 2013. And earlier this year, first-time buyers in England were able to purchase a home under the new version of the Help to Buy equity loan scheme.

The scheme, which is set to run until the end of 2023, will now be limited to people buying their first homes - unlike the previous ones. So what is the Help to Buy scheme? The scheme gives buyers improve their chances of securing a mortgage and getting on the property ladder with a smaller deposit.

READ: When should I buy a house? Phil Spencer reveals advice for first-time buyers

WATCH: Celebrity homes before and after fame revealed

Is the help to buy scheme worth it?

However, this method has some drawbacks too - well, according to property expert Phil Spencer, who has described the scheme as like "pouring fuel on the fire".

Exclusive: Phil Spencer reveals how to tackle working from home in the long run

READ: Phil Spencer's ultimate tips and guide to renting for students

Speaking exclusively to HELLO!, the Location, Location, Location host explained: "It's a difficult one, isn't it? Because anything that helps first-time buyers has to be applauded. I like that, great, well done!

"But it is like pouring fuel on the fire because more people will buy and borrow more money; and house prices consequently will rise. So that has to be a concern."

Phil Spencer shares his thoughts on the Help to Buy scheme

The Help to Buy equity loan scheme allows first-time buyers and home movers to purchase a new-build home with a 5% deposit. With the effects of the coronavirus pandemic and Brexit, there are now several new factors home buyers will have to consider when purchasing a property this year.

MORE: 26 best living room accessories to brighten up your mood

READ: 9 genius ways to decorate your rental home on a budget

"The other things I can't quite settle in my mind are that we got into the financial crisis in 2008 and the subprime lending," continued Phil.

"We got into that situation or the bank's got us into that situation because they were lending money to people that they perhaps shouldn't have been lending money to."

The housing market is exceptionally busy right now

Even though the TV star applauds the government's efforts, there are still a few concerns. He said: "As much as I completely celebrate things that help people get onto the housing market, because I think it's a great thing to do for a myriad of different reasons, I have a concern if the government - and therefore us as the state - are underwriting 95% mortgages to people that perhaps couldn't afford them.

"Is the whole thing going to happen again? This time it's the state - our government as the treasury (we the taxpayers) - who is lending money in situations where banks themselves aren't prepared to do anymore."

Like this story? Sign up to our newsletter to get other stories like this delivered straight to your inbox.

Sign up to HELLO Daily! for the best royal, celebrity and lifestyle coverage.

Email Address

By entering your details, you are agreeing to HELLO! Magazine User Data Protection Policy. You can unsubscribe at any time. For more information, please click here.

More Homes

See more