Economist calls for Help to Buy diluting

Thu, 20 Feb 2014

Economist calls for Help to Buy diluting
In light of recent house price increases, an economist has suggested the Bank of England would do well to dilute the Help to Buy scheme.

According to data from the Office of National Statistics (ONS), house prices increased by 5.5 per cent in December 2013 compared with a year earlier, up from 5.4 per cent in November. Dr Howard Archer, chief UK and European economist at IHS Global Insight, suggested diluting the scheme to avoid a housing bubble occurring,as he predictedhouse prices will increase by around eight per cent in 2014.

"Furthermore, there is a genuine possibility that this could prove to be a conservative forecast."

He added there remained a "very real danger that house prices could really take off over the coming months".

One suggestion he thought the Bank might take would be to lower the maximum property value in the government's flagship housing policy. The current limit of £600,000 could be reduced by as much as £300,000.

BBC business editorRobert Peston also recently suggestedsuch a dilution was being considered by Mark Carney. However, this was later refuted.
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.


Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company 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

Get in Touch