Research by British Pearl found a third of people were ‘opposed’ to the scheme, which provides a loan to boost the deposit for first-time buyers and others buying new builds, because they thought it made housing less affordable.
Since Help to Buy was launched in April 2013, the average property price in the UK has gone up by 36.7% from £170,335 to £232,797 in August, according to the latest Land Registry data.
Experts have suggested the scheme caused prices to rise because of the intense competition from buyers who now have more cash to spend.
Lack of housing
More than a third of the people questioned in the survey thought the Government should be using the money it pumped into the scheme to build more homes instead.
James Newbery, investment manager at property investment platform British Pearl, said the merits of Help to Buy were either not being communicated effectively enough to ‘Generation Rent’ or people were beginning to believe the scheme had become part of the problem rather than the solution.
He said: “Public opinion is becoming jaded by a persistent lack of stock and ever-increasing property prices, so something clearly needs to be done to address Britain’s housing crisis and the country’s perception of how the Government is handling it.”
Millennial distrust
The biggest critics of the scheme, which has mainly benefited first-time buyers, were millennials, the study found. Indeed, those aged between 18 and 35 were among the least likely to be in favour of Help to Buy. Older respondents to the survey, meanwhile, were more supportive.
In fact, said British Pearl, the younger someone was, the less likely they were to trust Help to Buy, suggesting the main demographic the scheme is supposed to help were the least likely to feel they would benefit.
Newbery added: “Millennials – who form part of the key demographic Help to Buy was designed to give a leg up to – clearly have a bone to pick with what’s been laid on the table for them in terms of housing options.
“The digital revolution has benefited those with the cash to spend by offering them unitised ownership and, in turn, increasingly diversified portfolios.
“Yet it is young people who feel more disconnected from property than ever.”
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