Even if they can’t agree how much Britain’s Help to Buy mortgage guarantee scheme will boost the housing market, analysts in the latest Reuters poll are united by an understanding of its dangers.
The government’s Help to Buy programme, unveiled in its March budget, is designed to boost mortgage lending and help buyers with small deposits get on the property ladder.
The poll predicts Britain’s house prices will rise at their fastest pace in four years in 2013, and data from Hometrack show London property was snapped up in April more quickly than at any time since October 2007 – adding to concerns Help to Buy might start a new house price bubble.
Analysts are largely split into two camps. On the one side, there are those who think Help to Buy will provide just a modest uptick in housing market activity. But even so, it doesn’t necessarily follow that the wisdom of the programme is sound:
The Help To Buy mortgage guarantee scheme may well give the market more of a boost from 2014. While measures to support the market are welcome, the scheme will encourage households to leverage up.