Why are our taxes subsidising speculators on the housing market?

[sir_arthur_strebe-grebling]

The government's Help to Buy scheme is mostly going to support wealthy people speculating on house prices. Why?

[evoman3957]

It's relative.........a Billionaire's idea of being poor, is being down to their last million. Kind of like playing computer games, do it long enough and you lose track of reality.

[upthecreekyetagain]

Why are our taxes subsidising speculators on the housing market?

The answer is quite simple - they aren't.

Comparing the income for everyone who takes out a new mortgage with those who take out a mortgage using the 'Help to Buy' scheme is comparing apples with pears.

Most new mortgages are not taken out by first time buyers - by definition therefore most people taking out a new morgage will not have to find a deposit as this is provided by the sale of their existing property.  Most buyers using the help to buy scheme are first time buyers, (85% in London, 94% outside of London)

First time buyers have to save for a deposit and even with the 'help to buy scheme' have to find 5% of the purchase price.  This discriminates against the lower earners and will skew the mean income figures for those buying under the scheme.