Friday, 27 September 2013

Help To Buy: Osborne Gives Bank of England Scope to Rein in Boom

George Osborne is to give the Bank of England greater powers to prevent the government's Help to Buy scheme causing a property boom.  Fears have been raised that the attempt to kick-start the market could result in a house price "bubble", with the market overheating and borrowers over-stretching themselves. This is of particular concern in London where prices have risen by around 10% year-on-year. From January, the Help to Buy initiative will provide mortgage guarantees on properties worth up to £600,000 but the Bank's financial policy committee (FPC) will make annual reviews and could recommend that the cap is reduced. It was initially due to assess the scheme after three years. Read more on the Guardian website.

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