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Pare back help to buy, suggests Clegg

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Pare back help to buy, suggests Clegg

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Published by Max Salsbury for 24dash.com in Housing and also in Local Government

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Nick Clegg has suggested that the government's help to buy scheme could be "pared back" in the wake of the Bank of England's warning that the housing market represents the biggest threat to the economic recovery.

During an interview yesterday, BoE governor Mark Carney warned that another "big debt overhang" was building up, and drew particular attention to the lack of new homes being developed in the country.

Responding to Mr Carney's comments, the deputy prime minister said that if the governor thought it was a good idea then the government should look at paring back schemes such as help to buy.

Clegg said: "He's certainly right when he says of course the big long-term problem is we simply don't build enough homes in this country. We haven't done so for years, we're making progress now, but we need to do much more in the future."

Mr Carney warned that twice as many new homes are built in Canada every year compared to the UK - a country with half the population of Britain.

Government figures show that the help to buy scheme was used to purchase 17,000 homes in the first nine months of its existence.

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