Help to Buy WILL create a property bubble

Dribley

So,is it a bubble or isn't it?

http://www.dailymail.co.uk/money/mortgageshome/article-2458536/Lloyds-chief-warns-Help-Buy-create-property-bubble.html

Graham_Devon

Blimey, he's changed his mind quick.

The chief executive of Lloyds Banking Group has branded the government’s Help to Buy scheme a ‘game changer’ for the UK’s economic recovery and rebuffed claims it will spark a house price bubble.

Antonio Horta-Osorio said that he was happy with the design of the scheme and that, contrary to popular criticism, he thought it would spark an increase in house building.

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2292578/help-to-buy-will-be-a-game-changer-lloyds-boss-hortaosorio

Apparently, a month later...

Ant!nio Horta-Os!rio, the executive of part state-owned Lloyds Banking Group, said unless the Government frees up planning restrictions to boost the supply of new housing the "Help to Buy" mortgage scheme risks creating a property bubble.

You can bet your bottom dollar this change of outlook is a political manouvre.

chucky

He said, you said, I said.

Love these threads.

Dribley

chucky wrote: »

He said, you said, I said.

Love these threads.

.......and typically have nothing useful to add, so just froth!

Loughton_Monkey

Dribley wrote: »

So,is it a bubble or isn't it?

It's just babble.

dealer_wins

Bubbles are good for anyone savvy, and potentially very costly for the sheeple!!

Thrugelmir

Graham_Devon wrote: »

You can bet your bottom dollar this change of outlook is a political manouvre.

More something to do with the fact that LloydsHBOS still has some serious property shareholdings. So boosting housebuilding is a win win situation for Lloyds. Wasn't so long ago Llloyds was effectively the 4th largest housebuilder in the UK. Funny old world.

chucky

Thrugelmir wrote: »

More something to do with the fact that LloydsHBOS still has some serious property shareholdings. So boosting housebuilding is a win win situation for Lloyds. Wasn't so long ago Llloyds was effectively the 4th largest housebuilder in the UK. Funny old world.

Great news that at least some people are starting to realise that Help to Buy is going to increase the supply side too not just increase demand.

antrobus

Dribley wrote: »

So,is it a bubble or isn't it?

http://www.dailymail.co.uk/money/mortgageshome/article-2458536/Lloyds-chief-warns-Help-Buy-create-property-bubble.html

According to Reuters;

The chief executive of Lloyds Bank has warned that the government's "Help to Buy" mortgage scheme will risk creating a dangerous bubble in property prices unless steps are taken to boost the supply of new housing and free up planning restrictions, The Financial Times reported.

http://uk.news.yahoo.com/lloyds-ceo-warns-against-housing-help-buy-bubble-221901345--sector.html#REtGK4q

So there isn't a bubble. But there is a risk of a bubble. Like we didn't know that already.:)

IveSeenTheLight

Help to Buy WILL create a property bubble

Is this a new meme?

chucky

IveSeenTheLight wrote: »

Is this a new meme?

Graham has started about 15/20 threads on Help to Buy recently so yes there must be a fair bit of urban myth about it.