Monday, 2 June 2014

Exhausting Help to Buy Pot Would Create Housing Bubble

A housing market bubble could develop in Britain if the second stage of the Government’s Help to Buy scheme is as successful as the Treasury hopes, leading economists have warned.  George Osborne has ringfenced support for as much as £130bn of high loan-to-value mortgages through £12bn of guarantees by the time the programme finishes in 2016, although early data has indicated that it will be less popular than the Chancellor had banked on.  Exhausting the pot would imply about 14pc of all housing transactions making use of the scheme.  In comparison, in the first six months of the scheme, it only represented 1.2pc of all housing transactions.  Read more on the Daily Telegraph website.

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