Home Builders Federation urges revival of Help to Buy scheme

The Home Builders Federation (HBF) is urging the British government to revive the ‘Help to Buy Equity Loan Scheme’ to combat declining housing supply and suppressed demand. The industry points to a dual crisis: historically low levels of planning permissions for private housing and a lack of affordable mortgage lending due to high interest rates.

Data from the HBF indicates that the number of home building sites receiving planning approval in England fell to a new low in the first quarter of this year, with only 1,220 sites granted approval—the lowest since 2006.

The original scheme, which operated from 2013 to 2022, allowed buyers to purchase new-build homes with a 5% deposit through a government-backed loan. According to Homes England, the program supported approximately 350,000 first-time buyer households and generated a return of roughly £1.24 billion for the UK Treasury.