How the Government Could Backtrack From Help to Buy

The Help to Buy mortgage scheme has proved controversial since the moment the plans were unveiled. In calling for a rethink, Vince Cable contributed the most damaging criticism so far.  “We don't want a new housing bubble," he told Sky News.  That is the primary concern of critics. The Government appears hell-bent on boosting house prices. Barratt Homes have said the average selling price of one of their homes is up 9pc on a year ago and the chief executive of Barclays raised his concern about a "property-driven boom". Meanwhile the boom in buy-to-let rolls on, with lending up by a nearly third on a year ago.  If the trends continue, and prices rises accelerate, the question for the Government will be how to backtrack from Help to Buy, without the embarrassment of cancelling it.  That would not be difficult. The 15pc of the mortgage the Government is willing to guarantee could be reduced. Offer less and the impact on the market - and risk to taxpayers - is greatly reduced. Read more on the Daily Telegraph website.