Help To Buy: Doubts Over Success Of Scheme

Written By Unknown on Sabtu, 05 Oktober 2013 | 18.54

By Poppy Trowbridge, Business and Economics Correspondent

The second phase of the government mortgage guarantee scheme Help to Buy is due to launch next week, three months earlier than expected - but experts are sceptical the initiative will help buyers.

Lack of capacity in the housing market, and a statement from one bank saying it cannot confirm whether it will take part in the scheme, means some would-be buyers could be left empty-handed.

Exclusive research by Sky News shows interest from potential buyers has skyrocketed since the Government surprised the market.

Property website Rightmove says clicks on its Help to Buy pages numbered 14,807 on Saturday, the day before last Sunday's surprise announcement.

When David Cameron revealed, on the eve of the Conservative Party conference, that the launch date had been brought forward from January - clicks, measuring potential buyer interest, spiked to 59,571.

Now, almost a week later, they remain far above average at 23,660.

There is concern that pent-up demand cannot be met by existing market services, while Barclays has issued a statement saying it is not able to guarantee a launch date.

"Whilst we cannot take a decision over participation in the new scheme before the terms are set, we are encouraged by the tone of the discussions so far," the bank said.

Estate agents are also worried that capacity to deal with a surge in interest is lacking.

Robert Ellice, of Clarke Hillyer, told Sky News: "At the moment we've got big delays in the whole process anyway, mortgages are still taking a long time to be offered and taking a long time to be verified on values."


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