Monday, 9 February 2015

Chancellor Ignored Advice from Treasury to Launch Help To Buy Scheme

The Chancellor’s economic justification for his Help to Buy programme was contradicted by the Treasury’s own internal analysis.  George Osborne has repeatedly defended the housing finance-support scheme by arguing it will stimulate more housing construction. Last September, the Chancellor claimed Help to Buy “is driving a big increase in house building, boosting the construction industry and increasing housing supply”. But Treasury advice from two years ago, when the policy was being formulated, predicted that such equity loans “will have a limited impact on housing supply since most of the sales are likely to be for homes which would have been built anyway”. Read more on the Independent website.

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