A politician has said that the affordability of housing through the government’s Help to Buy scheme will be “just a mirage” if prices continue to rise at their current rate.
The Independent reports that the initiative is continuing to receive criticism following news yesterday (November 12th) that the cost of property is now at an 11-year high.
Urgent action is now being called for by the Royal Institution of Chartered Surveyors, which says that something needs to be done to prevent demand from outstripping supply when it comes to homes up for sale.
Shadow chief secretary to the Treasury Chris Leslie told the Independent: “The prices of those properties are going to get more out of reach.”
He added that the value of homes covered underneath the Help to Buy scheme should be reduced from the current £600,000 limit and the Bank of England should – in his opinion – launch a review of the initiative straight away.
Labour has also argued that potential buyers should be earning over £100,000 in order to qualify for the larger mortgages on offer, while the help should ideally be aimed at supporting those who are earning less.