Property News · September 6, 2017

Help-to-buy scheme aids some buyers, but boosts builders even more


The government has spent £4.6bn already – why should it continue with the subsidy in such a generous form? Housebuilder Redrow says it’s looking forward to working with government to consider the future of the help-to-buy subsidy scheme beyond 2021. You bet it is. Since former chancellor George Osborne in 2013 committed to helping homebuyers purchase new properties with a deposit of only 5%, Redrow has reported record profits every year.The latest annual numbers – and a share price that has improved threefold since 2013 – shows how wonderful life has become for big housebuilders. You’d almost think Redrow was producing high-tech consumer gadgets. Operating margins are running at 19% and return on capital employed has hit 26%. About 40% of its private sales are to help-to-buy purchases, which is typical for the sector. Continue reading…

Source : theguardian.com
Read more…Help-to-buy scheme aids some buyers, but boosts builders even more

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