Help to Buy Phase 2 announcement – Reaction from HomeOwners Alliance

The Chancellor releases a little more detail about his Help to Buy Mortgage Guarantee scheme.

July 23, 2013

George Osborne is talking to lenders and house builders about the second stage of Help to Buy today. Here’s what Homeowners Alliance CEO Paula Higgins thinks about the scheme and what he’s expected to say:

“It’s encouraging to see that the government is finally taking the housing crisis seriously but the Help to Buy remains a short term scheme because it could damage the market in the long run.”

HOUSING SHORTAGE

“Britain hasn’t had enough houses for at least 20 years and it’s difficult to see why house builders think Help to Buy will improve the chronic shortage of supply.

“That said, it’s great to see a scheme which will help first time buyers get on the housing ladder and allow other people to move home.”

SHORT TERM SOLUTION

“But this is just papering over the cracks, but does nothing to solve the long term problems in the housing market and indeed set to make them worse. The Government needs to make sure that the scheme only runs for the planned three years and that there is a well thought through exit strategy.”

FEAR OF STATE GUARANTEED MARKET

“If Help to Buy goes on and on the housing market could come to rely on government guarantees – which is the situation the U.S. is desperately trying to escape from at the moment.”

RECKLESS LENDING

“And if the scheme is allowed to drive up house prices by inflating mortgages it could cause a bubble and encourage people to take on huge mortgages that could be devastating in the long run.  So we welcome the Chancellor’s recommendation that lenders use stringent measures to prevent reckless lending.”

(Copy ends)

 

When quoting this Press Release please link to the HOA website at http://hoa.org.uk/
For media enquiries contact Paula Higgins paula@hoa.org.uk or Angela Kerr  angela@hoa.org.uk

 

About the HomeOwners Alliance

The HomeOwners Alliance champions the interests of Britain’s homeowners and aspiring homeowners, and provides services they can trust. We are a member-led organisation, acting as the voice of the homeowner in the media, lobbying for the interests of homeowners and aspiring homeowners in government, and campaigning against bad practices in industry.

We directly engage with government and the media by conducting independent research and publishing reports that promote and champion the interests of homeowners. Former Housing Minister, Grant Shapps, called the HomeOwners Alliance “good news for homeowners and homeownership”. Sunday Times wrote: “with the launch of the HomeOwners Alliance, British property owners finally have an ally”.

At hoa.org.uk, we provide independent advice for the key moments in owning a home, supported by legal and industry experts.  Get our free newsletter with a market-wide review of house prices and all the latest tips on buying, selling, improving and managing homes.  On our website you can find free independent guides, checklists and top tips.

For a more personalised service, our members can put their questions to our panel of experts to get a response within 48 hours, can speak to us for professional unbiased advice on our Home HelpLine and have access to our Legal HelpLine.