In 2013 the UK government introduced a Help to Buy scheme that was aimed at helping people to get on the property ladder, i.e., buy their first home. The details are complex, but economically, the...

In 2013 the UK government introduced a Help to Buy scheme that was aimed at helping people to get on the property ladder, i.e., buy their first home. The details are complex, but economically, the scheme offered a subsidy to first-time buyers. In 2013 the UK suffered from a relative shortage of housing and, at the same time, had no significant house-building programme. What are the consequences of such Help to Buy scheme under these circumstances? Who benefits most from such a scheme? Buyers, or sellers? Explain in economic terms.