• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • Home
  • What is LKP
  • Find everything …
  • Contact
Donate

Leasehold Knowledge Management Logo

Secretariat of the All Party Parliamentary Group on leasehold reform

Mobile Menu

  • Home
  • What is LKP
  • Find everything …
  • Contact
  • Advice
  • News
    • Find everything …
    • About Peverel group
    • APPG
    • ARMA
    • Bellway
    • Benjamin Mire
    • Brixton Hill Court
    • Canary Riverside
    • Charter Quay
    • Chelsea Bridge Wharf
    • Cladding scandal
    • Competition and Markets Authority / OFT
    • Commonhold
    • Communities Select Committee
    • Conveyancing Association
    • Countrywide
    • MHCLG
    • E&J Capital Partners
    • Exit fees
    • FirstPort
    • Fleecehold
    • Forfeiture
    • FPRA
    • Gleeson Homes
    • Ground rent scandal
    • Hanover
    • House managers flat
    • House of Lords
    • Housing associations
    • Informal lease extension
    • Insurance
    • IRPM
    • JB Leitch
    • Jim Fitzpatrick MP
    • John Christodoulou
    • Justin Bates
    • Justin Madders MP
    • Law Commission
    • LEASE
    • Liam Spender
    • Local authority leasehold
    • London Assembly
    • Louie Burns
    • Martin Paine
    • McCarthy and Stone
    • Moskovitz / Gurvits
    • Mulberry Mews
    • National Leasehold Campaign
    • Oakland Court
    • Park Homes
    • Parliament
    • Persimmon
    • Peverel
    • Philip Rainey QC
    • Plantation Wharf
    • Press
    • Property tribunal
    • Prostitutes
    • Quadrangle House
    • Redrow
    • Retirement
    • Richard Davidoff
    • RICS
    • Right To Manage Federation
    • Roger Southam
    • Rooftop development
    • RTM
    • Sean Powell
    • SFO
    • Shared ownership
    • Sinclair Gardens Investments
    • Sir Ed Davey
    • Sir Peter Bottomley
    • St George’s Wharf
    • Subletting
    • Taylor Wimpey
    • Tchenguiz
    • Warwick Estates
    • West India Quay
    • William Waldorf Astor
    • Windrush Court
  • Parliament
  • Accreditation
  • [Custom]
Menu
  • Advice
  • News
      • Find everything …
      • About Peverel group
      • APPG
      • ARMA
      • Bellway
      • Benjamin Mire
      • Brixton Hill Court
      • Canary Riverside
      • Charter Quay
      • Chelsea Bridge Wharf
      • Cladding scandal
      • Competition and Markets Authority / OFT
      • Commonhold
      • Communities Select Committee
      • Conveyancing Association
      • Countrywide
      • MHCLG
      • E&J Capital Partners
      • Exit fees
      • FirstPort
      • Fleecehold
      • Forfeiture
      • FPRA
      • Gleeson Homes
      • Ground rent scandal
      • Hanover
      • House managers flat
      • House of Lords
      • Housing associations
      • Informal lease extension
      • Insurance
      • IRPM
      • JB Leitch
      • Jim Fitzpatrick MP
      • John Christodoulou
      • Justin Bates
      • Justin Madders MP
      • Law Commission
      • LEASE
      • Liam Spender
      • Local authority leasehold
      • London Assembly
      • Louie Burns
      • Martin Paine
      • McCarthy and Stone
      • Moskovitz / Gurvits
      • Mulberry Mews
      • National Leasehold Campaign
      • Oakland Court
      • Park Homes
      • Parliament
      • Persimmon
      • Peverel
      • Philip Rainey QC
      • Plantation Wharf
      • Press
      • Property tribunal
      • Prostitutes
      • Quadrangle House
      • Redrow
      • Retirement
      • Richard Davidoff
      • RICS
      • Right To Manage Federation
      • Roger Southam
      • Rooftop development
      • RTM
      • Sean Powell
      • SFO
      • Shared ownership
      • Sinclair Gardens Investments
      • Sir Ed Davey
      • Sir Peter Bottomley
      • St George’s Wharf
      • Subletting
      • Taylor Wimpey
      • Tchenguiz
      • Warwick Estates
      • West India Quay
      • William Waldorf Astor
      • Windrush Court
  • Parliament
  • Accreditation
You are here: Home / News / Taxpayer subsidy via Help To Buy for leasehold houses to run until 2021, MPs told

Taxpayer subsidy via Help To Buy for leasehold houses to run until 2021, MPs told

February 18, 2019 //  by Admin4

By Harry Scoffin

Leasehold houses are STILL being sold under the Help To Buy scheme and taxpayers’ subsidy for them will remain until 2021, the Communities Select Committee has been told.

Only in 2021 do the existing Help To Buy procedures end.

Oral evidence – MHCLG annual report and accounts 2018 – 21 Jan 2019

Housing, Communities and Local Government Committee Monday 21 January 2019 : Melanie Dawes CB, Permanent Secretary, Ministry of Housing, Communities and Local Government; Jeremy Pocklington, Director General, Housing, Ministry of Housing, Communities and Local Government; Dr Jo Farrar, Director General, Local Government and Public Services, Ministry of Housing, Communities and Local Government .

The issue was raised by committee member Theresa Pearce MP last month after she referenced the inquiry into leasehold injustices.

Four per cent of the Help To Buy funding has been used to purchase leasehold houses, even though most house builders have abandoned offering them for sale owing to public outrage.

An MHCLG official accepted that the state has exposed itself to risk by having leasehold houses eligible under the flagship housing policy:

“On the issue of modelling the Department’s exposure, you are right that the Department has an exposure to the housing market through the scheme. That is something that we look at very closely. We do a lot of modelling against stress-test scenarios, for example those from the Bank of England, to determine what our exposure is.”

The official claimed that government is only impacted if beneficiaries of Help To Buy elect to sell their leasehold houses. “Of course, any losses are realised only if an individual sells their home,” he added.

And it was claimed the proportion of new-build leasehold houses now being sold under Help To Buy is very small.

“On the specific issue of our exposure to any losses associated with leasehold houses, they are a relatively small proportion of properties available under the scheme, whatever the terms of that lease are. At the moment, only about 4% of properties under the scheme are being sold to leasehold houses. Ideally, we want that to be even lower still.”

Related posts:

Seize ‘golden opportunity’ offered by Help To Buy 2021 to end taxpayer-funded spread of toxic leasehold, urges Tory MP Taxpayer boost for offshore speculators as Help To Buy lands 17,000 home buyers in leasehold Leasehold HousesTaxpayers funding two leasehold houses a day in 2019 through Help To Buy … despite government saying THREE times they should be banned No more Help To Buy payola to developers for leasehold houses Leasehold houses to be outlawed, says the Daily Mail

Category: Communities Select Committee, Latest News, NewsTag: Harry Scoffin, Help To Buy, Leasehold houses, Theresa Pearce MP

Latest Tweets

Tweets by @LKPleasehold

Mentions

Anthony Essien (34) APPG (37) ARMA (87) Bellway (30) Benjamin Mire (32) Cladding scandal (71) Clive Betts MP (31) CMA (45) Commonhold (52) Competition and Markets Authority (41) Countryside Properties plc (33) FirstPort (42) Grenfell cladding (56) Ground rents (54) Harry Scoffin (150) James Brokenshire MP (31) Jim Fitzpatrick (35) Jim Fitzpatrick MP (30) Justin Bates (40) Justin Madders MP (67) Katie Kendrick (37) Law Commission (60) LEASE (66) Leasehold Advisory Service (62) Leasehold houses (32) Long Harbour (48) Martin Boyd (80) McCarthy and Stone (39) National Leasehold Campaign (38) Persimmon (49) Peverel (61) Property tribunal (49) Redrow (30) Retirement (37) Robert Jenrick (33) Roger Southam (47) Sajid Javid (38) Sebastian O’Kelly (55) Sir Peter Bottomley (201) Taylor Wimpey (106) Tchenguiz (33) The Guardian (33) The Times (31) Vincent Tchenguiz (43) Waking watch contracts (40)
Previous Post: « Why is the Tory party not supporting real home ownership, asks Daily Telegraph
Next Post: London mayor Sadiq Khan launches leasehold advice portal and slams LEASE as ‘unfit for purpose’ »

Reader Interactions

Comments

  1. Trevor Bradley

    February 18, 2019 at 9:03 pm

    Have I got this all wrong or are the government not taking into account the bigger picture.
    They only seem interested in not losing money (taxpayers money) and no interest in the purchasers who purchased leasehold, many not realiseing what they were in for.
    The HTB scheme may well end in 2021 but the government could have stopped it being used to purchase leases (glorified rent books) at the stroke of a pen when it all came to light about totally unnecessary leasehold house sales. They can still do that today.
    Had the HTB scheme been cancelled it would have reduced the amount of available “customers” to the builders.
    All that the HTB scheme has done is drastically helped builders to sell leasehold houses.
    In fact, in the case of leasehold, it should have been designated Help To Sell (on behalf of builders)

Above Footer

Advising leaseholders. Avoiding disasters.
Stopping forfeiture. Exposing abuses. Urging reform.

We depend on individuals for the majority of our funding.

Support Us and Donate

LKP Managing Agents

Become an LKP Managing Agent

Common Ground
Adam Church
Blocnet property management2

Stay in Touch

To achieve victory in the leasehold game where you are playing against professionals and with rules that they know all too well - stay informed with the LKP newsletter.
Sign Up for Newsletter

Professional Directory

The following advertisements are from firms that seek business from leaseholders.
Click on the logos for company profiles.

Footer

About LKP

  • What is LKP
  • Privacy and data

Categories

  • News
  • Cladding scandal
  • Commonhold
  • Law Commission
  • Fleecehold
  • Parliament
  • Press
  • APPG

Contact

Leasehold Knowledge Partnership
Open Data Institute
5th Floor
Kings Place
London N1 9AG

sok@leaseholdknowledge.com

Copyright © 2023 Leasehold Knowledge Partnership | All rights reserved
Leasehold Knowledge Partnership Limited (company number: 08999652) is a company limited by guarantee that is a registered charity (number: 1162584) with the Charities Commission.
LKP website is hosted at www.34sp.com
Website by Callia Web