New Governor of Bank of England could end Help to Buy

New Governor of Bank of England could end Help to Buy

If the Help to Buy scheme threatens to create a housing bubble, the new Bank of England governor has pledged to bring it to an end.

Speaking to Sky News, Mark Carney said the scheme would not be extended if it posed any threat to the stability of the economy.

Mr Carney said: “If the view at a point in time is that (Help to Buy) is contributing to an underlying vulnerability of risk to the UK economy, I would fully expect that the Financial Policy Committee would not expect to extend it, but that is a hypothetical.”

The announcement came as Cluttons Residential Property Forecast predicted that house prices in Greater London will grow by 6.9% this year, due to the extension of the Help-to-Buy scheme.

Credit ratings agency Fitch has also warned that Help to Buy could artificially push up house prices without increasing the number of homes built.

What do you think of Help to Buy? Is an end to the scheme after three years the right answer?

General News

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