Source · National Audit Office

Help to Buy: Equity Loan scheme – progress review

Published: 13 Jun 2019 Recommendations: 7 Type: Value for Money NAO confirmed: 7 Department: Ministry of Housing, Communities and Local Government

This report assesses the scheme’s performance against its objectives, its management, and plans for the future of the scheme.

Dept: Ministry of Housing, Communities and Local Government Topics: Business and industryCommercial and financial managementCorporate financeLocal services and housingRegulation nao.org.uk →

Recommendations

7 items

7 accepted 5 implemented 2 in progress

Rec	Recommendation	Addressee	Acceptance	Implementation
1	Housing market conditions have changed since the start of the scheme. The Department should assess the existing scheme against current market conditions and determine whether any changes to how it operates and criteria for eligibility would increase its impact. Ref Page 13, paragraph 28, point a · Implemented Q1 2021-22	Ministry of Housing Communities and Local Government	Accepted	Implemented ✓ NAO
2	The Department should consider further changes to the new scheme from 2021 to achieve other housing policy goals, for example to enact the government’s commitment to addressing the practice of developers selling new houses as leasehold. Ref Page 13, paragraph 28, point b · Implemented Q1 2021-22	Ministry of Housing Communities and Local Government	Accepted	Implemented ✓ NAO
3	The Department should plan a further evaluation of the scheme, either soon to inform the new scheme from 2021, or after the end of the current scheme to inform potential new initiatives to support home ownership and housing supply after 2023. Ref Page 13, paragraph 28, point c · Implemented Q1 2026-27	Ministry of Housing Communities and Local Government	Accepted	In progress ✓ NAO
4	The Department should support Homes England to take appropriate enforcement action to recover money due from homeowners who have fallen into arrears. Ref Page 13, paragraph 28, point d · Implemented Q4 2025-26	Ministry of Housing Communities and Local Government	Accepted	Implemented ✓ NAO
5	Homes England should continue to improve its oversight of the Help to Buy agents and its mortgage administrator Target. Ref Page 13, paragraph 28, point e · Implemented Q1 2019-20	Homes England	Accepted	Implemented ✓ NAO
6	The Department should review the information given by the Help to Buy agents and developers to potential buyers, to confirm that it fully explains the financial risks of buying a new-build property through the scheme. Ref Page 13, paragraph 28, point f · Implemented Q1 2020-21	Ministry of Housing Communities and Local Government	Accepted	Implemented ✓ NAO
7	The Department has not undertaken a detailed assessment of the impact of the scheme on the wider housing market. It should expand the scope of its next evaluation to examine such wider effects, including a potential influence on the new-build premium, and identify lessons learned for any future interventions. Ref Page 13, paragraph 28, point g · Implemented Q1 2026-27	Ministry of Housing Communities and Local Government	Accepted	In progress ✓ NAO