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Chancellor defends Help to Buy

paulajohn
Written By:
paulajohn
Posted:
Updated:
09/03/2017

George Osborne has poured scorn on affluent-area critics of the Help to Buy scheme.

The Chancellor has slammed critics of the government’s Help to Buy scheme, stating much of the country still faces a struggling housing market.

Speaking at the Conservative party conference in Manchester, Osborne accused sceptics of the scheme of failing to appreciate that, outside of the UK’s more affluent areas, the notion of a house price bubble is alien.

“There are some people – many living in the richest parts of London – who say we shouldn’t be doing these things,” he said.

“I say take you arguments down the road to Nelson or Colne, where house prices have fallen for the past five years. Take your arguments to Bury or Morecambe where young working couples are still living at home with their parents.

“Take your arguments to our great towns and cities where there are families who have saved for years, earning decent salaries, who can afford the mortgage repayments but can’t possibly afford the deposit being asked by the banks these days.”

Responding to recent criticism suggesting that Help to Buy phase two will cause excessive house price inflation, Osborne said:

“I’m the first person to say we must be vigilant about avoiding the mistakes of the past.

“That’s why I gave powers to the Bank of England to stop dangerous housing bubbles emerging. But too many people are still being denied the dream of owning their own home.

“So instead of starting the second phase of Help to Buy next year, we’re starting it next week.”

Osborne later added: “We are the party of home ownership and we’re going to let the country know it.”

Last week Shadow Chancellor Ed Balls told the Labour party conference that Help to Buy would price first-time buyers out of the housing market and later demanded the government allow the Bank of England to immediately audit the scheme.


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