Help to Buy scheme launched

The second phase of the Government's controversial £12 billion Help to Buy scheme is launched today . It is intended to help first time home buyers obtain mortgages worth up to 95 per cent of property values

Live updates

Help to Buy scheme 'means more homes needed'

More action needs to be taken to tackle the lack of homes, according to surveyors and lenders.

Studies have pointed to demand outstripping supply in homes coming up for sale, amid fears the new Help to Buy scheme will fuel another housing bubble.

The Royal Institution of Chartered Surveyors warns the country is not building "anything like" the number of homes it needs. Credit: PA

Peter Bolton King, from the Royal Institution of Chartered Surveyors, said the new phase of Help to Buy "exacerbates a situation that is already there. The underlying problem is a lack of supply".

But David Cameron said the scheme also helps with supply "for the simple reason that the builders won't build unless the buyers are able to buy".


Cameron welcomes HSBC signing up to Help to Buy

The Prime Minister has welcomed the news that HSBC will be participating in the Help to Buy mortgage scheme from later this year.

HSBC to join the Government's Help to Buy scheme

HSBC has announced it will join other lenders Natwest, RBS, and Halifax in offering mortgage deals under the Help to Buy scheme, later this year.


Clegg: Help to Buy will not escalate 'overheated' market

Deputy Prime Minister Nick Clegg has dismissed concerns that the Help to Buy scheme would make the problem of the "overheated" property market in the capital worse.

Speaking at an event in east London, he said: "I don't believe that this second part of the Help to Buy scheme is suddenly going to make that escalation in London prices qualitatively worse, that's already happening.

"But - a big but - of course we need to be vigilant, of course we need to moderate it, even turn it off if we think that it is not appropriate and is providing inappropriate stimulation to the housing market.

Danny Alexander: 'House prices are pretty flat'

Chief Secretary to the Treasury Danny Alexander has defended the Help to Buy scheme amid fears it will drive up house prices by creating more buyers for fewer properties.

He told ITV News: "The housing market in this country is still at a pretty low level. The number of first-time buyers are low, the risks therefore to the system are low.

"I think people who think there is a housing bubble should get out a bit more - go out around the country and see that house prices are pretty flat.

"The big problem here is a lack of demand whereby a whole lot of people who can afford a mortgage just can't get their first step on the housing ladder."

'Big concern' property supply is lagging behind demand

It's encouraging that the market is starting to improve in all parts of the country with more buyers looking to make a move and more sales going through.

Even so, it's a big concern that the supply of property coming to the market is lagging so far behind demand.

This imbalance is likely to result in further upward pressure in prices over the coming months, particularly in the nation's hotspots.

– Peter Bolton King, Rics global residential director
Load more updates Back to top

Latest ITV News reports