The Housing Market
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Bank 'has room to raise UK rates'

Bank 'has room to raise UK rates' | The Housing Market | Scoop.it
The Bank of England could raise interest rates a "fair amount" without hurting homeowners on the Help to Buy scheme, according to one of its policymakers.

Via Bruce Fellowes
Trudy Bateman's insight:

The government uses the help to buy scheme to loan money to those in need of a property. These loans have to be paid back over a period of time with Interest in form of mortgage payments. If interest rose, it could lead to a rise in repossessions if people were unable to afford the higher monthly payments.There are concerns that Help to Buy may lead to another housing bubble and borrowers could get into trouble when rates do eventually rise.

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Economic forecasters call for measures to cool down London's property market

Economic forecasters call for measures to cool down London's property market | The Housing Market | Scoop.it

EY Item Club says combination of strong demand for property and lack of supply is leading to a worrying bubble (#ITEM Club warns of #housing bubble over cooking in #London http://t.co/FG7fkjfU0g)...

Trudy Bateman's insight:

The demad for property is increasing, due to higher incomes and an increasing population. This therefore has created a higher price. In the short run the government cannot increase the supply to counteract this, as building properties is a legnthy process. However, housing has a degree of necessity, and therefore prices need to stay low so that those with less income can still afford a property. Therefore, measures do need to be made.

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Barratt sales up 71% with boost from Help to Buy scheme - The Guardian

Barratt sales up 71% with boost from Help to Buy scheme - The Guardian | The Housing Market | Scoop.it
The Guardian
Barratt sales up 71% with boost from Help to Buy scheme
The Guardian
The company completed sales on 6,195 properties – 1,001 more than in the same period a year earlier.
Trudy Bateman's insight:

The help to buy Scheme is a government made scheme to help people buy their first property. Many people are in demand of a home, however cannot afford the doposit to be able to buy and therefore have to result in renting. The help to buy scheme reduces deposits to only 5%, and will also give people a loan of up to 20%. This therefore has meant meant that people can demand to buy a house, rather than demanding to rent, increasing sales.

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