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Help to Buy - Freedom of Information Request

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I made a Freedom of Information request to the Treasury about new builds bought using Help to Buy that have since been resold. They redirected me to the Homes and Communities Agency.

My questions and their responses:

Quote

 

How many houses bought using it, have now been re-sold?
There has been a total of 4,051 full disposals of properties bought under the Help to Buy
scheme. This excludes partial staircasing disposals.

How much did these houses cost in total?
The original purchase price for these properties was £909,174,280 (of which the HCA share
was £180,237,225).

How much did these houses then accrue in total sales?
The total proceeds from these sales was £1,023,842,762 (of which the HCA share was
£202,594,535)

How many of the houses sold, were sold at a profit, based on the previous sold price?
3,509 of the 4,051 properties were sold for a profit, based on the previous sale price.

How many of the houses sold, were sold at a loss, based on the previous sold price?
420 of the 4,051 properties were sold at a loss, based on the previous sale price (the
remaining 122 were sold at no profit or loss).

How much money has the Treasury lost on houses re-sold at a loss?
From the 420 sales at a loss, the total loss was £1,007,772 against the original investment. 

However, this figure does not take into account the profit made from the 3,509 properties sold for more than their original sale price; as per questions 2 and 3, there has been an overall net profit of over £22m based on all sales to date. These figures also do not take into account the revenue from Stamp Duty Land Tax which would also have been payable. As a result, we are not able to identify the exact return HM Treasury would have received from the disposal of these properties.

 

So a £22m profit overall but 10% of the properties were resold at a £1m loss, while house prices in general were rising. The losses could get interesting if ever house prices were falling, particularly as London is now 40% instead of 20%.

Interesting that without me asking, they bring SDLT into it. They are obviously pleased about the extra revenue generated from their inflation of prices!  

If anyone wants to ask their own questions, this is the email address I got the response from: mail@homesandcommunities.co.uk 

 

 

 

 

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So the vast majority of people who used HTB have then sold on ...I'm pretty amazed they made a profit on an already premium prized new build.

 

Would maybe point to people using HTB to buy then flipping quickly for profit to use increase deposit on non new builds ? 

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A strange FOI update that doesn't add up.

October 2016 the HCA said 4051 bought using the scheme had since been resold. 122 at same price, 420 at a loss of £1m but 3509 resold at a profit, giving an overall profit of £22m

August 2017 the HCA say 3835 bought using the scheme have since been resold (how can it be less?) 599 at a loss, 3236 at a profit. Notice none at the same price! Overall profit now £19.9m.

So still in profit but £2m less than last October.

If anyone else wants to try obtain some figures, it's mail@homesandcommunities.co.uk from here:

https://www.gov.uk/government/organisations/homes-and-communities-agency/about/access-and-opening

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