Scale back the "Help to Buy" program
#helptobuy
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@george_osborne
GB
recipient
George Osborne
UK Chancellor of the Exchequer
"Help to Buy" continues to distort UK housing market. The scheme must be scaled back!
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Housing finance has long been a particular weakness of the UK economy. Three of the past four deep recessions in the UK have been associated with banking distress connected to the property market. Whether or not clarity is achieved over whether the Help to Buy scheme can be used for second homes, it is a missed opportunity for real reform – and will actually make matters worse. The government insists it wants to remove the implicit government subsidy to the banking sector – but this scheme represents a not-so-hidden subsidy from taxpayers at large to the banks and a few, relatively well-off, homebuyers. It may push up house prices in London and the south-east, but it will do nothing to address the fundamental problems in our housing finance system.

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