There is a new warning that Help To Buy may inadvertently lead to a price bubble which in turn could destabilise the economy.
A new report by the Organisation for Economic Co-operation and Development claims that Help To Buy has strengthened housing demand.
Housing supply has not risen to meet demand. In addition, house prices have increased rapidly and may create risks to financial stability in the case of a downward adjustment.
It adds that the recovery... has been marked by large house price increases, particularly in London raising homeowners' wealth, but also reducing affordability for first-time buyers and contributing to higher household indebtedness.
Last May the OECD gave a similar warning - even so, it says UK economic growth is still stronger than in many other European countries.
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Comments
There wouldn't be a need for Help to Buy if houses sold for what it would cost to rebuild them and the plot of land. The housing market is a fictitious construct to make money, where it should be about providing dwellings. The Government should, IMHO, ban sales to non-doms, and let local parishes decide whether or not to have second and holiday homes in their patches.