Government told its time to exit Help to Buy Economists who had previously supported Help to Buy subsidies have now warned George Osborne that the scheme is undermining affordability by pushing up house prices, reports the FT. Kate Barker, a former MPC member who sits on the board of Taylor Wimpey says she has changed her views on the scheme having previously thought it was a helpful intervention, but now believes the Government should start looking at when it should exit the scheme. Michael Saunders, from Citi, said the schemes job was done. With the economy growing strongly and unemployment falling rapidly, we believe that such stimulus is no longer needed, he said. Meanwhile, Danny Gabay of Fathom Consulting, says the policy gave implicit government support to high and rising house prices and encouraging a buy now before its too late attitude that has pushed prices nationwide far above sustainable levels. The FT goes on to consider what the Governments Help to Buy exit options are. Separately, the paper looks at how Australia and Canada have dealt with their mortgage guarantee schemes. Australia privatised the operation entirely, while Canada set up a specific government body to deal with it, while allowing some private operators in.
Posted on: Mon, 12 May 2014 12:20:38 +0000
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