The Mortgage Rescue Scheme enabled not-for-profit housing associations to buy a stake or all of a home and allow the residents to continue living there by renting it back, the BBC reports.
A new report from the National Audit Office (NAO) said it helped 2,600 households avoid having their homes repossessed but this was still way under the target of 6,000.
The NAO found “wrong calls” were made when predicting how many people would choose to relinquish ownership of their home and rent it back from a housing association, compared with the numbers who would opt for shared ownership with the housing association.
Some 98.5% of those on the scheme chose to sell their home, whereas the original estimate was that only 15% of people on the scheme would do so.
Its report also found the Department for Communities and Local Government (DCLG) did not have detailed, up-to-date information on its target group and whether they had sufficient equity to share ownership with a housing association.
The scheme was launched by the Labour government in 2008 following a surge in the number of homes being repossessed because people were unable to continue with mortgage payments.
