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Help to Buy means help to make profit for housebuilding firms
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WILL the Conservatives continue subsidising expensive housing for the better-off?
The latest accounts of housebuilder Taylor Wimpey suggest they will.
They show that Taylor Wimpey made £850.5 million profit in 2019 — building just 15,719 homes.
If firms can make big profits from a small number of houses, the chance of them ending the housing crisis is small.
They do better by building small volumes at high prices than mass housebuilding.
This isn’t the market not working — according to its accounts, Taylor Wimpey relied on government support scheme Help to Buy for 34 per cent of its sales.
The average price of its Help to Buy subsidised sales was £277,000 — which is above the £233,000 national average house price — suggesting the Tory scheme is inflating house prices.
The Tories like this long-running scheme and are likely to renew it in some form.
First, they would rather help better-off house-buyers than low-income renters.
Second, they want to use government support to help firms that help top Tories — Taylor Wimpey kept up its Tory links by putting former Tory MP and long-term party insider Angela Knight on its board in 2016.
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