Cameron would consider changes to Help to Buy scheme

David Cameron said he would consider changes to the government's Help to Buy mortgage guarantee scheme if advised to do so by the Bank of England. The Prime Minister said: "It is absolutely right that we are alert to any dangers and problems."

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Economist: House prices likely to continue rising

House prices are likely to continue rising "solidly" over the next few months, according to a leading economist.

House prices rose by 8.0% in the 12 months to March to reach £252,000 on average, ONS figures show. Credit: PA

Dr Howard Archer, chief UK and European economist for IHS Global Insight, said: "Housing market activity is likely to be supported by substantially improved consumer confidence, markedly rising employment, improving earnings growth and extended low mortgage interest rates."

The rise is also currently being fuelled by the Help to Buy initiatives and a short supply of homes in some areas, he added.

House prices rise 17% in London in a year

Annual house price rises in England are being driven by a 17% year-on-year increase in London, where the average house price has reached £459,000, according to the Office for National Statistics.

"House prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth," it said in a report.

It also recorded a 6.6% rise in the East and a 6.1% increase in prices in the South East.

More: David Cameron would consider changes to Help to Buy scheme

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PM: I would consider changes to Help to Buy scheme

David Cameron said he would consider changes to the Government's Help to Buy mortgage scheme if advised to do so by the Bank of England.

The Prime Minister says he would consider changes to the 'Help to Buy' scheme if advised by the Bank of England. Credit: PA

When asked on Radio 4's Today show if the Government would think about changing the mortgage guarantee scheme to reduce its upper borrowing limit, the Prime Minister replied: "Of course. We will consider any changes that are proposed by Mark Carney."

The Bank of England's Governor said at the weekend that the bank is looking at new measures to control mortgage lending amid a shortage of home building.

The Help to Buy mortgage scheme lets people buy property worth up to £600,000 with deposits as a low as 5%.

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