This week Chancellor Philip Hammond confirmed the scheme would close from year-end, explaining that with 30 lenders offering 90-95% loans outside the scheme, the purpose of the initiative had been “successfully achieved”.
Tyrie (pictured), said: “This is welcome news. The Help to Buy mortgage guarantee scheme will not be missed. The Treasury Committee identified a number of problems with it, not least that it would inflate house prices and create a substantial liability for the taxpayer.
“Government meddling in the mortgage market is fraught with risks and unintended consequences. The big challenge is to address the under supply of homes, both to rent and to buy,” he added.
“Property taxation remains distortive. Taxpayer subsidies for home ownership increases demand and prices, and may do little or nothing to increase supply.”
Borrowers still have access to the Help to Buy ISA and equity loan scheme, both rolled out under David Cameron’s government.
Homeownership was the flagship policy of the previous Tory government, but as yet it is unclear what direction new housing minister Gavin Barwell will take this in.
In a speech earlier this month, Barwell indicated the government could shift its focus to a wider range of tenures and consider rented homes as part of its 2020 house building target.