Cable urges caution over Help to Buy


Business secretary Vince Cable has said the Help to Buy mortgage scheme should not be introduced in January.
While the Liberal Democrat wants first-time buyers to have better access to the market, he now believes that the programme might cause a housing bubble.
There have been some concerns raised by opposition figures and activists that Help to Buy might arbitrarily raise the prices of properties across the UK – further pricing out younger people from purchasing a home.
Speaking on the BBC Radio Four Today programme, Mr Cable said: “We certainly do not want a housing bubble.”
Inflated property prices were one of the primary causes of the US’ sub-prime mortgage crisis, which was a contributory factor in the 2008 global recession.
Credit was given to consumers who would never have had a chance of repaying what they owed and the amount of debt piled up so high, financial institutions could not lend money to businesses – causing a worldwide knock on effect.

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