The precariousness of the current recovery is emphasised by the likely effect of a rise in mortgage rates. I suspect that it could be actually worse than implied. If large numbers of people found that they could not service their debts at the same time, that would multiply the damage. A wave of repossessions might cast lots of properties on the market at the same time, driving prices in a sudden lurch downwards, pushing vastly greater numbers of people into negative equity, and scaring people currently disparate to enter the market. The Help to Buy scheme would only make such a scenario worse, and there is no sign of the government even trying to rebalance housing in this country, which has now become a fundamental part of the malfunction of our economy.
George Osborne seems to me not to have an economic strategy; merely a political strategy for the next election.
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