Cameron dismisses H2B bubble

3rd January 2014

David Cameron has dismissed fears that the Government's Help to Buy (H2B) scheme is creating a property market bubble.

Speaking as he announced that 6,000 offers had been made using the mortgage guarantee scheme, he said that house prices remained well below the peaks reached in 2007. Mr Cameron said: "I think if you look across the country, there are many parts of the country where house prices are barely moving at all. Nationally, excluding London and the South East, house prices are up just 3% over the last year - I think there are some people who are rather London-centric about this." The PM added that some forecasters do not believe prices will reach levels seen before the financial crash until 2019. Meanwhile, Halifax has revealed that it has received 3,584 applications for a H2B mortgage since the scheme starter in October.

Source:     The Guardian 03/01/2014