Rich people are ruining Help to Buy with this loophole… and taxpayers are paying the price

It wasn’t supposed to be for you, rich Baby Boomers

It’s not exactly the smartest economic policy as it is, but it seems Help to Buy is riddled with loopholes.

One loophole that has emerged recently allowed a Tory MP to buy a second home with a taxpayer-backed interest-free loan.

Peter Bone, who earns nearly £75,000 as an MP and pays his wife £45,000 from taxpayer funds to be his secretary, used Help to Buy to borrow £35,000 towards the cost of a brand new house.

In order to claim the interest free loan, the £175,000 home was bought under his wife’s name, though Peter Bone lists it as his constituency address.

The Bones have technically not done anything wrong, however the 63-year old MP and his wife are taking advantage of a taxpayer-backed scheme which is designed to help working people buy their first home.

The rules do not have an age or income limit, but the home they are buying must be their only residential property.

Labour MP John Mann said: “Help to Buy is meant to be for young people seeking a first home, not for ageing Members of Parliament.

“The Prime Minister will not be amused.”

The Help to Buy scheme has been criticised for driving up house prices and moving to a dangerous government-backed mortgage market by a number of high profile commenters, including Graeme Leach, former chief economist at the Institute of Directors and former Bank of England governor Mervyn King.

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