Prime minister David Cameron has ruled out foreign buyers or people looking to buy second homes from using the Help to Buy scheme.
Speaking in the House of Commons at prime minister’s questions last week, Cameron said the Help to Buy scheme will have rules to stop it being used for second homes.
The Government came under fire from Labour for allowing “mortgages for millionaires” when the scheme was first announced in March. The Treasury select committe also raised concerns about who would have access to Help to Buy.
Help to Buy consists of a shared equity loan scheme for new-build homes, which launched in April, and a mortgage indemnity guarantee for all homes is set to launch in January 2014.
Cameron said: “This scheme is for people’s only home. It will have a mechanism in place to make sure that is the case. The second thing is that in order to take part in the scheme you have to have a credit record in this country so it won’t help foreign buyers.”
London & Country associate director of communications David Hollingworth says: “The Government left itself open to criticism because there are so few details when it launched the scheme.”