The Help to Buy policy, announced in yesterday’s Budget, is falling apart in the government’s plans. It wasn’t very good on the surface, and then it became clear that it might end up providing a subsidy to people buying second homes. The policy has now been dubbed the “spare home subsidy” by Ed Balls.
As a result, you can almost hear the wheels screeching as the Treasury decides to change course. Here’s what Osborne said yesterday, announcing the policy:
The deposits demanded for a mortgage these days have put home ownership beyond the great majority who cannot turn to their parents for a contribution. That’s not just a blow to the most human of aspirations – it’s set back social mobility and it’s been hard for the construction industry. This Budget proposes to put that right – and put it right in a dramatic way.
And here’s what the Tory Treasury account is tweeting today:
And are Labour really against parents helping their kids buy their first home? No wonder Blair said Balls doesn’t get aspiration…
— Tory Treasury (@ToryTreasury) March 21, 2013
The problem is that, while the policy was introduced to make it easier for people to buy homes without their parents’ help – as Osborne said – it will also have the uncomfortable side-effect of subsidising parents to buy homes for their children. Rather than changing the policy, the Treasury seems to have decided to change the spin instead. The real aspiration seems to be to make everyone just shut up about the details and go and have a £2.99 pint of beer – now just £2.98.