The chancellor’s ‘Help to Buy’ property scheme is a large public subsidy with which the UK government has started to underwrite the risk for private businesses in the mortgage market. It is hard to feel this is wise.
Updated 23rd July 2013: There is an analysis of the expansion of the scheme announced on Tuesday July 22nd here from John McDermott at the FT – it has some interesting comments too. (Registration may be required to read the piece).
Interestingly, the Institute of Directors describe the expanded scheme as dangerous.