The UK has been urged to cut back controversial schemes Help to Buy and Funding for Lending, to help dampen the UK’s raging property market.
Global think tank the OECD said house prices look overvalued compared to wages and rents and the UK needs to fight that.
The OECD called for tighter access to the government’s Help to Buy scheme, which offers state guarantees for mortgages, and for the Bank of England to reign in Funding for Lending, meaning bigger deposits with a cap on the loan-to-value ratios for mortgages.
While these measures would likely reduce the double figure growth in house prices which could be signalling a bubble, they would make it even more difficult for young people to get on the property ladder.
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