Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Chancellor Rachel Reeves Rules Out Help to Buy Scheme Revival

Chancellor Rachel Reeves has indicated that the government will not revive the Help to Buy scheme. Reeves stated that defence spending is the priority over incentives to boost the property market, according to The Daily Telegraph as reported by The Negotiator.

When asked about the possibility of bringing back Help to Buy, Reeves said that prioritising defence means the government cannot make commitments in every area. She explained that over-committing could lead to under-delivery and high interest rates. Reeves made these comments at a conference organised by investment bank Peel Hunt, where she also suggested that tax rises are more likely than introducing costly new schemes for first-time buyers.

Government departments have been instructed to find spending cuts to help fund an additional £15 billion for defence over the next four years. This comes amid reported disagreements within the Cabinet about spending priorities.

Earlier in the year, there were reports that a slowdown in new-build sales had prompted the government to consider a successor to Help to Buy. The Ministry of Housing was said to be reviewing the impact of previous Help to Buy rounds on supply, prices, and buyer access.

The Help to Buy scheme, which ran from 2013 to 2022, allowed buyers to purchase new-build homes with a 5% deposit and a government-backed loan. In contrast, last month the Scottish Government announced a new shared-equity scheme offering first-time buyers interest-free loans worth £10,000.

This week, Savills reported that more than half of all first-time buyers now rely on financial support from family to get onto the property ladder.