Page 654 - Appeal bundle 31 files

Appeal Bundle
“James has become increasingly concerned by the behaviour of Persimmon in
the last 12 months,” the source said. “Leasehold, build quality, their leadership
seemingly not getting [that] they’re accountable to their customers are all points
that have been raised by the secretary of state privately.

“Given that contracts for the 2021 extension to Help to Buy are being reviewed

shortly it would be surprising if Persimmon’s approach wasn’t a point of
discussion.”

They added: “James is clear any new government funding scheme will not
support the unjustified use of leasehold for new homes, including Help to Buy.”

Yesterday critics demanded a complete overhaul of the scheme.

Clive Betts, the Labour MP and chairman of the housing, communities and local
government select committee, said: “Help to Buy has clearly been the prime
driver of Persimmon’s profits. Companies are there to make money but they

should behave responsibly as well. Some of Persimmon’s practices have been
questionable to say the least.

“I think most ordinary people will be outraged by this.”

Nationwide Building Society says that house prices for new-build properties have
grown 15 per cent faster than for older properties since Help to Buy was
introduced.

An official report published last year found that almost two thirds of people using
Help to Buy did not need it to get on the property ladder and that the average
income of applicants was £53,000.

BATES N0 000651