Government pledges extra £10bn for Help to Buy scheme

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The Government has pledged another £10bn for the Help to Buy scheme.

Prime minister Theresa May announced the extra cash ahead of this week’s Conservative Party conference in Manchester.

However she gave no signal about extending the initiative’s current 2021 end date.

The money will help an extra 135,000 would-be homeowners, according to BBC reports.

The prime minister did not say where the extra money would come from.

But she says more detail will come out in the Budget on 22 November.

London estate agent Jeremy Leaf says: “There is no doubt that some have taken advantage of the system to inflate prices or to get rid of units which they may have found otherwise difficult to shift.

“On the other hand, we have seen many prospective purchasers very satisfied with their acquisitions so once again good independent professional advice on both sides is paramount when entering into this arrangement.

“‘The other problem is that too much emphasis on the demand side and not enough on the supply will only push up prices further and make property even more expensive for those who we are trying to help the most i.e. lower income first-time buyers.”

The Government will finish its independent evaluation of the Help to Buy equity loan scheme this year.

The review will cover the performance of the Help to Buy scheme between 2015 and 2017.

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