Govt. may pare back “Help to Buy” housing scheme

Govt. may pare back “Help to Buy” housing scheme

The "Help to Buy" scheme that helps people buy their first home could be rolled back to addresses overheating housing market, Deputy Prime Minister Nick Clegg has indicated.

Mr. Clegg said that the government could pare back the mortgage help scheme in case the Bank of England (BoE) determines that the country's housing market is overheating.

BoE Governor Mark Carney recently said that the central bank was considering providing advice on changing the terms of the scheme. He also blamed insufficient supply of homes for soaring prices.

The "Help to Buy" was launched by the government with an intention to assist people who are capable of making mortgage repayments but are struggling to raise a deposit to buy a property. The scheme enables many more people to buy a property, pushing prices up in many areas of the country.

Speaking on the topic, Mr. Clegg said, "I think if he [Mark Carney] says that we need to pare back on some of the government schemes like Help to Buy, then I think we should do so." He also admitted that the housing crisis in the country, particularly in London, was because of lack of supply.

Earlier, Shadow Chancellor Ed Balls said that BoE Governor Mr. Carney's warning on house supply put the ball firmly in Chancellor George Osborne's court.

As per a fresh estimate, Britain needs to build nearly 300,000 homes per year until the year of 2031 to meet current demand.