George Osborne's flagship home ownership programme Help to
Buy will fail to see new homes being built but help boost banks' and builders'
profit margins, Fitch Ratings agency has warned. Banks would be set to benefit from the extra
home loans being offered while builders will prosper on the higher house prices
brought about by an inflated housing market, as supply fails to satisfy demand.
"For house builders the main benefit from the second phase of the scheme
will come from rising house prices, rather than increased volumes," said
Fitch Ratings. "Builders also might
prefer to avoid sharply increasing construction because of the risk that they
may not be able to sell the properties when they are completed in two years'
time. The risk was offset by Help to
Buy's three-year duration, Fitch added.
Read more on the Huffington Post website.
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