Help to Buy 'exit strategy' is needed
The housing market risks becoming 'addicted' to the Government's flagship Help to Buy scheme unless a clear exit strategy is set out, the Council of Mortgage Lenders' chairman has warned.
Nigel Terrington said people deserve to be given a vision of what the housing market is going to look like over the next 10 or 20 years, not just short-term fix policies.
He added that Help to Buy must not morph in to the UK's version of United States mortgage giant Fannie Mae.
The new phase of Help to Buy was launched last month to inject fresh life in to the UK housing market by offering state-backed mortgages to aspiring home buyers with deposits as low as 5%.
Mr Terrington told a mortgage conference in London: "We don't want our customers – or the lending community – or indeed the political party of the day – to become addicted to the scheme as a permanent component of the UK's financial system."
He said the British pursuit of home ownership has bordered on the obsessional at times and the market needs to recognise its own tendencies towards excess as well as those of its customers.