A new report from the Institute for Fiscal Studies has taken a fresh look at the Government’s Help to Buy scheme and concluded that it largely benefited higher earners rather than significantly improving social mobility. The scheme was introduced in England in 2013 with the aim of helping first-time buyers who did not have financial support from family or friends. It worked through two main measures: a mortgage guarantee scheme allowing buyers to purchase with a 5% deposit an equity loan scheme offering a Government-backed loan of up to 20% on new-build properties, rising to 40% in London for part of the scheme At its peak in 2014/15, around one in five first-time buyer purchases in England were supported through Help to Buy. What the report found According to the IFS, the scheme made only a limited difference to overall housing affordability and had relatively little impact on social mobility. One of the main issues highlighted was that the equity loan scheme applied only to new-build homes. Because new-build supply is limited in many parts of the country, particularly in London and the South East, access to the scheme was uneven. Buyers in lower-cost regions were often more able to benefit, and these areas also tended to have higher average incomes relative to local house prices. The report also noted that many buyers were already close to normal mortgage lending limits before using the scheme. In some cases, additional financial help from family was still needed at the last minute. The wider debate Critics of Help to Buy have long argued that the scheme may have pushed house prices higher by increasing buyers’ purchasing power without significantly increasing supply. Supporters, including James Cleverly, continue to argue that it helped thousands of people onto the property ladder while supporting housebuilding activity. As with many housing policies, the reality is probably somewhere in the middle. Where the scheme stands now The equity loan scheme has now closed to new applicants in both England and Scotland, with Wales expected to follow. The mortgage guarantee scheme, however, remains available across the UK. A practical view For many people, affordability remains the biggest challenge when buying a home. Schemes like Help to Buy can improve access in the short term, but they do not necessarily solve the wider issue of housing costs increasing faster than incomes. The report is another reminder that borrowing capacity, deposits and affordability are all closely linked - particularly while interest rates remain relatively high. Final thought Help to Buy clearly supported a large number of purchases over the years, but the latest analysis suggests the long-term impact may have been more limited than originally hoped. For anyone considering buying, moving or reviewing their finances, understanding affordability properly remains far more important than relying on support schemes alone. If you’d like to talk through your finances or longer-term planning, feel free to get in touch.

UK consumers are starting to cut back on travel spending, with the latest figures suggesting households are becoming more cautious about higher discretionary costs. New data from Barclays shows overall card spending rose by just 0.9% year on year in March , slightly down from 1% in February . Within that, travel spending fell by 3.3% , marking the first decline seen since March 2021 . Overseas travel starting to slow The figures suggest many households are either delaying trips abroad or opting for UK-based breaks instead. Spending fell across several travel-related categories, including: travel agents airlines public transport At the same time, hotel and accommodation spending increased slightly by 1.2% , helped by more domestic bookings over the Easter period. Cost pressures still shaping behaviour Wider economic uncertainty continues to affect spending habits. Ongoing tensions in the Middle East have added further concern around energy prices and household costs. Research linked to the Barclays figures found that around one in seven adults have delayed major purchases or focused more on saving because of concerns about rising energy bills. Although the UK energy price cap fell by 7% in April , forecasts suggest it could increase again in July due to higher wholesale energy prices. Essential spending rising again Essential spending increased modestly overall by 0.5% . Fuel spending rose by 1.6% , marking the first increase in more than a year, largely driven by higher oil prices. Discretionary spending growth also slowed to 1.1% , although spending on clothing and entertainment remained relatively resilient. Confidence remains mixed One of the more interesting parts of the data is the contrast in confidence levels. Most people still feel relatively secure about their own household finances, but confidence in the wider UK and global economy has weakened. At the same time, retail sales remained strong overall, increasing by 3.6% year on year , helped by higher food spending. A practical view None of this points to a sudden collapse in spending, but it does suggest households are becoming more selective. Travel is often one of the first areas where people pause or cut back when costs feel uncertain, particularly when energy prices and inflation risks remain in the background. For businesses, this matters because changes in consumer confidence tend to feed through gradually rather than all at once. Final thought The overall picture is still mixed. People are continuing to spend, but there are growing signs that households are becoming more cautious about larger or less essential purchases. As costs, inflation and global uncertainty continue to shift, confidence is likely to remain sensitive over the coming months. If you’d like to talk through your finances or wider business planning, feel free to get in touch.