Everyone wins? UK housing provision, government shared equity loans, and the reallocation of risks and returns after the Global Financial Crisis

The 2008 Global Financial Crisis was an extreme shock to the UK housing market. Frozen international capital markets resulted in highly restrictive mortgage lending by retail banks, and collapse homebuying threatened heavily indebted housebuilding industry. To counteract threat, between 2013, Government issued shared equity loans requiring matching from housebuilders alongside bank mortgages deposits homebuyers. In it introduced a new scheme, Help Buy (HtB), which no longer required housebuilders. This article explores distribution of benefits Government’s issuance for homebuyers buoy demand through its effects on UK’s three largest publicly listed found that increased their output 29,000 homes generated additional £1.4 billion cash 2013 2017 as direct result HtB. Over same period, paid shareholders £3.5 dividends share prices rose average 140 per cent, suggesting clear transfer income wealth taxpayers emergence mode provision.