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Thursday, 13 June 2013

Some Sort of Answer on Help to Buy

As reported in the Guardian, I am glad to see David Cameron rolling back from Help to Buy in response to a question from Seema Malhotra MP.

I have criticised this policy before as likely to increase housing costs, enmire the government in the sub-prime market and do nothing to help the unaffordable cost of housing. Although David Cameron's answer helps limit some of the damage, it still shows no awareness that overpriced housing is a result of not supplying houses, and that market mechanisms have been totally inadequate.  Cameron's answer is also characteristically vague as to what mechanism is going to deliver his desired outcomes.  I particularly wonder about how he is going to stop people from abroad  taking advantage of the scheme for speculative purposes.

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