The average price of a home in Britain according to Fathom Consulting, could reach £300,000 by the end of 2015 due to the Government’s Help to Buy Scheme, fearing a new housing ‘bubble’.
In a scathing attack on the Chancellors plan to get more people on the property ladder, this financial consultancy, run by a former Bank of England economist said that the scheme could inflate prices by up to 30% from the current average of £233,000.
Executive Member Geoff Underhill comments,
“This is complete scare mongering on behalf of ‘Fathom Consulting’. At Abacus, we support the Governments efforts to introduce first time buyers to the market, and it is vital for the economy that the scheme is a success. However, for that to happen, many more homes will need to be built and it may be that planning restrictions are relaxed or funding options are expanded to encourage the ‘new build’ construction companies to really embrace the scheme and really pull the country out of recession.”