LABOUR leaders in Gloucestershire have criticised the government’s decision not to renew a scheme that helped young first time buyers get their foot on the property ladder.

The ‘Help to Buy’ mortgage scheme allowed first time buyers to have a much smaller 5 per cent deposit with the government loaning a further 20 per cent so that mortgages could be secured.

Since its introduction by the previous Tory administration in 2013, over 800 families have taken up the scheme in Gloucestershire.

In Stroud 130 different families have been helped to get onto the property ladder.

The scheme was part of a series of measures to kickstart the housing market and was always scheduled to end in 2016.

Chancellor of the Exchequer, Phillip Hammond, announced the closure yesterday, confirming that the scheme would not be extended into 2017.

In a letter to Bank of England governor Mark Carney, the chancellor said it had a “specific purpose that has now been successfully achieved”.

But Labour county councillor for Stonehouse, Lesley Williams, said: “I am thoroughly disappointed with the government’s decision to close this scheme as it will mean that young people in my division that have hopes of owning their first home will now find it even harder.

Stroud News and Journal:

“We should be focussing on building homes fit for families, but regressive moves like this will make it even harder.

“Whilst in the Labour Party we have promised to build over one million homes in our first five years of government, of which 500,000 would be high quality council housing, something that we are already doing here in Stroud.”

In the last three years the scheme had helped families buy homes at a lower average rate of £157,000 in comparison to standard average rate of £216,000 for those not using the scheme.

Labour county councillor Tracy Millard (Tuffley) said: “This backwards move will just go on to increase the problems facing young people and prolong the wait for decent homes.

“The reason this scheme was introduced was to encourage house building in places like Gloucester and to make sure those homes go to local first time buyers.

“The Tories have had eleven years in Gloucestershire to fight for better homes, and this is the final nail in the coffin.

“Where were our MPs and county council in this matter? Better, and more affordable homes is something that I would have thought all political parties would want to support. ”

Stroud MP Neil Carmichael hit back at the comment, saying the policy had achieved what it had set out to do.

“Having supported over 86,000 households, many high street banks are again offering 90-95 per cent loans to first time buyers,” he said.

“It was a time limited intervention which has achieved its purpose and which therefore is closing as planned.

“We will continue to support people to get on the housing ladder including through the Help to Buy ISA and the Help to Buy Equity Loan Scheme which we have already extended to 2020.”` The chancellor Mr Hammond also said market confidence meant buyers were less reliant on the scheme, with 30 lenders now offering their own 90-95 per cent mortgage schemes.

He said it was “important to note that the end of this particular scheme does not diminish in any way the government’s commitment to supporting those looking to get on the housing ladder”.

Other help-to-buy schemes will continue until 2020, including the five-year, interest-free equity loans available for up to 20 per cent of the property price when a buyer has raised their own 5 per cent for a deposit.

However, that scheme is only available for new-build homes.