You are here: Home - Mortgages - Buy To Let - News -

Vince Cable criticises Help to Buy scheme

Written by:
Business secretary Vince Cable has criticised the government’s Help to Buy scheme, saying the flagship policy has simply pushed up house prices.
Vince Cable criticises Help to Buy scheme

Speaking at the Liberal Democrats annual conference in Glasgow, Cable demanded reform of the market and said Chancellor George Osborne’s policy had made properties ‘less affordable’ by driving up house prices.

“We’ve got a horribly distorted land market,” he told the conference. “The ideal solution, which I support, is land value taxation. But until we get there, there are practical ideas like auctions of land which we could get into to deal with that problem.

“Mr Osborne has this policy called Help to Buy, which does not actually help you to buy because it drives up the price and makes it less affordable. What we really need is help to build. Small builders desperately need credit.”

Last week Prime Minister David Cameron praised the scheme’s impact, stating it had already proved critics wrong.

Cable, speaking in a debate about housing policy, said councils needed to have the ability to halt the Right to Buy policy as properties were not being replaced by local authorities.

“The Right to Buy policy, without replacement, has done enormous damage and we have to stop that,” he said.

These calls were echoed by Liberal Democrat president Tim Farron who described the rental market as ‘unstable’ and said the amount needed to raise a deposit was too much.

“The current trend is horrific,” he said. “In the early 80s, you could buy a house on the equivalent of £20k salary with a deposit of £3,000. Today, that is laughable. Now, you need around £36,000k a year, much more than that if you live in London or the Lake District, or else you need help from your parents. And they’d better be wealthy and generous.

“Our housing market robs us all of opportunity, but especially it robs the under 40s. Children growing up living in unstable rents, bumped from school to school. Communities broken up, segregated, socially decimated. Businesses struggling to find workers, workers struggling to pay rent. Lonely, sicker, older people. London built for foreign investors, not the people who work there.”

Earlier in the day leader Nick Clegg revealed plans to build 50,000 new homes on a new rail link between Oxford and Cambridge.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

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.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

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