Business Secretary Vince Cable has said it is time for the government to reconsider its controversial Help to Buy scheme, amid fears it is inflating house prices – in particular in London and the South East.
He told the BBC: “We certainly need to look at that [scheme] again. It was conceived in very different circumstances.”
He said ratings agency Standard & Poor’s “is expressing serious worries” about the scheme, which sees the government guaranteeing 15% of a mortgage for buyers with only a small deposit, thereby flooding the market with more potential demand.
Cable expressed serious concern about the “raging” house price boom in London and the South East.
“If you don’t increase the interest rate […] this boom that’s taking place in house prices gets out of control and the only people who can afford to live in large parts of London are foreigners and bankers,” he said.
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