Vince Cable has warned that the Treasury's Help to Buy
scheme could trigger a house price bubble.
The business secretary said he was worried about the scheme's possible
impact. The policy could make it easier for people to obtain mortgages, but
would have to be designed properly to minimise the potential risks. Cable was talking about the scheme's mortgage
guarantees on house purchases worth up to £600,000 that will come into effect
in January next year. Another arm of the scheme, offering loans to people who
buy newly built houses, was launched in April, but Cable said concerns had not
been raised about this. On the mortgage
guarantee scheme, he said: "I did warn about it, and I am worried about
the danger of getting into another housing bubble. If it's properly designed,
it could be a useful addition.” Read
more on the Guardian website.
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