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Flagship Policy Brought Forward

The conservative government has announced that is it going to bring forward it’s flagship policy by three months. In what is being blamed for the surge in house prices the scheme is currently only available for buyers of brand new homes the second phase which will allow buyers of second hand homes will now be rolled out next week and not in January 2014. The government has been criticised for creating another property bubble which will push prices out of the reach of the very people it is trying to help.

The government mortgage backed scheme will help fund £130bn of lending and will also see the state owned lenders get involved with the scheme. The government has set aside £7bn for the scheme and many commentators are concerned that phase 2 of the scheme is going to push prices to unsustainable levels over the next couple of years. Unless new homes are built to satisfy the demand it is difficult to see what else is going to happen.

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