House price bubble is biggest threat to Help to Buy success

Brokers and lenders are united in their belief that a house price bubble represents the biggest threat to Help to Buy’s success.

Research from the Intermediary Mortgage Lenders Association, which polled 300 brokers and 16 of its 20 members in July, shows 60 per cent of lenders and 59 per cent of brokers believe artificially inflated house prices are the biggest threat to the Help to Buy scheme. Imla members anticipate prices to rise by 2.7 per cent by the end of the year.

Imla executive director Peter Williams says: “There is a clear consensus that first-time buyers stand to benefit most from the second part of Help to Buy. But if house prices continue to rise for the duration of the scheme, then in essence we will be giving with one hand and taking away with the other.”

Source Money Marketing August 28th 2013