The Government has said it will continue to promote Help to Buy and does not believe it is causing a housing bubble, according to the Queen’s Speech today.
The Queen said in her speech: “My ministers will continue to promote the Help to Buy and Right to Buy schemes to support home ownership.”
Briefing notes from the speech show the Government does not believe the scheme is causing a housing bubble, despite David Cameron last month stating he will alter the terms of the scheme if Bank of England Governor Mark Carney advised it.
The briefing note says:
“Over 7,300 households have been supported by the Help to Buy: mortgage guarantee scheme by the end of March, of which 80 per cent are for first-time buyers.
“Only 19 per cent of mortgage applications are from London and the South East, with the average price less than £152,000, and this has not resulted in a housing bubble.”
A spokesman for the Department for Communities and Local Government said:
“Everyone needs the security and stability of a decent, affordable home, and more people who aspire to own their own home should have the opportunity to do so.
“That’s why the Government, through its long-term economic plan, is getting Britain building again, fixing the broken housing market left by the last Administration and helping hardworking people get what they want.”
Published by AMY LODDINGTON (Financial Reporter)