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.”
“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.”
“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.”
About the HomeOwners Alliance
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