First Time Buyer
Help to Buy will unbalance economy – Ed Balls
Both phases of Chancellor George Osborne’s flagship scheme have now launched and recent house price indices have shown property price rises across much of the country.
Balls, speaking at the Confederation of British Industry annual conference, said he supported the idea behind the scheme but increasing mortgage availability while failing to build more houses would ultimately hinder people trying to purchase their first home.
“We share your concerns about the Chancellor’s current reliance on boosting housing demand through taxpayer-guaranteed mortgages to secure recovery through the Help to Buy scheme, while failing to take action to boost housing supply,” he said.
“The danger is that by boosting demand while failing to build more homes, the Chancellor will deliver an unbalanced recovery and make home ownership even further out of reach for the aspiring first time buyers his scheme should be helping.”
Balls repeated his demand for the Bank of England be given a chance to review the scheme immediately and called for further investment in housing stock.
“That is why we continue to agree with the IMF in urging the government to bring forward £10bn of infrastructure investment this year and next year, which could be used to build 400,000 affordable homes.
“How can it make sense, for example, for a scheme that should be about helping first time buyers to offer taxpayer-backed mortgages on homes worth up to £600,000?”
Tag Box
There are 0 Comment(s)
Everything you wanted to know about ISAs…but were afraid to ask
The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...
Your right to a refund if travel is affected by train strikes
There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...
Could you save money with a social broadband tariff?
Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.
What will happen if rates change
How your finances will be impacted by a rise in interest rates.
Regular Savings Calculator
Small regular contributions can build up nicely over time.
Online Savings Calculator
Work out how your online savings can build over time.
DIY investors: 10 common mistakes to avoid
For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.
Mortgage down-valuations: Tips to avoid pulling out of a house sale
Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?
Five tips for surviving a bear market mauling
The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...
Money Tips of the Week
© AE3 Media Ltd, Floor 7, Lincoln House, 296 - 300 High Holborn, London WC1V 7JH, Company.