Help to Buy helps push house price rises to 11-year high
Well what a surprise. I predicted making it easier to buy houses with no effort to increase supply would lead to just the effect this article profiles namely:
UK house price growth hit an eleven year high in September as a flood of new buyers entered the housing market.
First time buyers are continuing to take advantage of the Government’s Help to Buy scheme to make their first step on the property ladder, which in turn has pushed UK house prices up, according to the latest Royal Institution of Chartered Surveyors (Rics) survey.
The survey, regarded as an early indicator for the market, said 54pc of Rics members reported house price rises in September, the highest reading since 2002.
A net balance of 49pc reported rises in new buyer enquiries last month, while the number of homes sold almost hit a four-year high, as the market continues to be fuelled by Government stimulus schemes.
Help to Buy offers Government loans to allow people to buy new-build homes with a 5pc deposit, while Funding for Lending is designed to ease borrowing conditions for households as well as small businesses.