The Building Societies Association (BSA) are warning of the danger of a house price bubble, unless the government comes up with an exit strategy from its Help to Buy scheme. The scheme allows buyers to take out an equity loan with the government, which enables them to put down a deposit of just 5%. It has already proved popular with buyers and is due to end in 2017. The BSA has stated that taxpayer support should not become a permanent feature of the housing market and that an exit strategy was a necessity otherwise it will cause “a seriously distorted housing market, and the very real risk of a future price bubble”.
The Office for National Statistics (ONS) has reported that house price inflation across the UK is now at 2.6%, which is a slight reduction from last month, when annual inflation was 2.7%. The BSA said consumers are currently feeling their most confident in three years, and the industry believes that house prices will continue to rise in the next 12 months.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with property solicitors in Bromley and across the country.