In an overtly political move with an eye fixed firmly on the 2015 general election, Mr Osborne announced that the Government would offer five-year interest-free loans worth up to 20 per cent of the value of new-build homes costing less than £600,000. From January, another scheme will see taxpayers underwrite mortgages to those with small deposits, including more than a million people trapped with so-called “zombie” loans, where the fall in the value of their homes has left them unable to move.
The Government will offer £12?billion of guarantees covering mortgages worth more than £120?billion. They are intended to help 644,000 people over the next three years.
Wasn\’t this rather played out in the US during the 90s and oughts?
And, err, wouldn\’t we rather that house prices declined than that they are propped up with subsidies?
Politics and economics just aren\’t a good mix, are they?