Help-to-buy scheme pushes Redrow Homes profits to record high
Redrow Homes CEO Steve Morgan has called for the government's Help to Buy scheme to be extended beyond 2021 and revealed two in every five private house sales come via the scheme. The housebuilding firm has sold 5,882 homes through Help to Buy so far in 2017 and Redrow's profits rose by more than a quarter to a record £315m ($414m). Critics argue the scheme has done little to ease the housing crisis. "Look at the share prices, look at the profits. Developers have clearly done very well," said Duncan Stott, director of campaign group Priced Out.

Windfall: Steve Morgan, pictured with third wife Sally Toumi

The boss of one of Britain's biggest housebuilders was nearly £50million richer last night as the company cashed in from Help to Buy.

Posting a 26 per cent rise in profits to a record £315million, Redrow chairman Steve Morgan revealed two in five private house sales now come through the Government's mortgage scheme.

The bumper figures sent shares in the company up 4.4 per cent – adding £29million to the value of the 29 per cent stake held by Morgan (pictured, right, with third wife Sally Toumi, 48).

The 64-year-old, who set up Redrow in 1974 and is one of Britain's richest developers, was also promised a dividend payment of £18.3million, taking his gains for the day to £47.3million.

With Help to Buy making up around 40 per cent of sales at Redrow, Morgan called for it to be extended beyond its current deadline of 2021.

'Help to Buy has boosted housing supply and we look forward to working with the Government to consider the future of the scheme beyond 2021,' he said. 'We certainly hope that it doesn't go away.'

But critics said the scheme, through which the Government ploughs taxpayers' money into the housing market, has done little to solve the chronic shortage of homes.

Instead, they argue, it has driven up property prices and lined the pockets of developers.

'Help to Buy is boosting the sales prices of houses that probably would have been built anyway,' said Duncan Stott, director of campaign group Priced Out.

'Look at the share prices, look at the profits. Developers have clearly done very well from the scheme.'

Help to Buy was launched in early 2013 to boost housebuilding in the wake of the financial crisis.

Under the scheme, families can buy new homes worth up to £600,000 with deposits of 5 per cent, with the Government providing a loan of 20 per cent interest-free for five years.

Redrow has sold 5,882 homes through Help to Buy, including a record 1,882 last year when revenues rose 20 per cent to £1.7billion.

Redrow proposed a dividend of 17p a share and the stock rose 27p to an all-time high of 647p, making Morgan's stake worth £695million.

The company is now targeting revenues of £2.2billion in 2020, profits of £430million, and a dividend of 32p a share – enough to earn Morgan more than £34million if his stake remains the same.