Chancellor calls for vigilance over housing bubble

Wed, 05 Feb 2014

Chancellor calls for vigilance over housing bubble
George Osborne has called for people to be vigilant about the prospect of a housing bubble, which many are saying is being fuelled by Help to Buy.

"Absolutely we should be vigilant and we have created in the Bank of England the mechanism for that vigilance," the chancellor of the exchequer told the House of Lords economic affairs committee, making reference to the Financial Policy Committee, which has regulatory powers over the banking sector.

Many critics have called for the government's flagship housing policy to be diluted or stopped altogether, amid fears it is causing house prices to rocket.

However, Osborne said Help to Buy was supporting mortgage lending primarily to first-time buyers and for properties not in the capital, suggesting the scheme is doing "what it is designed to do", which is to address a failure in the financial system, rather than the housing market.

The chancellor also pointed out that housebuilding rates were rising to try to cope with the surge in demand, but conceded that it was an issue that would not be solved quickly, calling it a historic problem.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.




mths

Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company

HomeBuyService.co.uk is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy
FAQ
Sitemap

Get in Touch