Most first time buyers are aware of the ‘Help to Buy’ scheme but many do not properly understand it, suggests a new report.
The new YouGov figures show that seven out of 10 people who have bought in the past two years and almost two thirds of people in the process of buying their first home are aware of government home buying schemes including 'Help to Buy'.
However, when asked how the schemes work on a scale of 1 to 7 (1 meaning 'I have no idea' and 7 meaning 'I understand completely') the equity element of 'Help to Buy' scored 3.7 while the mortgage guarantee part was marked 3.8.
First time buyers also have mixed feelings about whether 'Help to Buy' is a good idea. Over a third first time buyers and three in ten potential first time buyers believe it makes home ownership affordable’.
But around a third more feel it will cause a house price bubble and a quarter describe it as 'risky'.
"The government has regularly trumpeted the 'Help to Buy' scheme as a way of getting first time buyers on the property ladder and making housing more affordable for young people," said Tom Rees, Research Manager for YouGov Reports.
"However, while many people looking to purchase their first home know about the scheme, they have lower levels of understanding about how it works. With the Bank of England watching the housing market closely and the government hoping that the property market will continue to aid the recovery, 'Help to Buy' is sure to remain a controversial subject for the foreseeable future."