Help to Buy is 'fuelling debt', says Worcester's Labour parliamentary candidate

Help to Buy is 'fuelling debt', says Worcester's Labour parliamentary candidate

Councillor Joy Squires, Worcester's Labour parliamentary candidate

Worcester MP Robin Walker

First published in News Worcester News: Tom Edwards by , Political Reporter

WORCESTER'S Labour parliamentary candidate has poured cold water on nearly 500 first time buyers getting on the housing ladder in Worcestershire - saying she is worried about it "fuelling" debt.

Councillor Joy Squires insists the Government's £9.7 billion Help to Buy scheme is creating another potentially dangerous housing market bubble.

The politician's remarks comes two days after your Worcester News revealed how 473 county people have got their first home under the deal, which offers mortgages in return for a five per cent deposit rather than 25 per cent.

The data includes 83 people in Worcester, 142 in Wychavon and 30 in Malvern.

Cllr Squires said "I am pleased for those who have been able to get mortgages for the first time, but share widespread concerns about Help to Buy fuelling property prices.

"In the end we need the Government to support more house building, which is at an all-time low under this current Government, so that all housing needs can be met without it causing housing price inflation and encouraging high levels of mortgage debt."

It follows a surge in property building, which across the country stands at its highest rate in 11 years after 15 successive months of growth.

Property prices are currently nearly 10 per cent higher on average than one year ago, with London and the South East responsible for most of the rise.

But Worcester MP Robin Walker, who welcomed Help to Buy earlier this week, said the Coalition has led the recovery after a "collapse" in house building.

“Labour’s record on housing was truly appalling," he said.

"Their 'Great Recession' led to a collapse in housebuilding and it became nearly impossible for many people to achieve their dream of owning their own home."

Under the scheme, the Government underwrites the remaining 20 per cent deposit normally needed so lenders can hand over the keys.

It applies on properties worth up to £600,000, subject to lending approval, although the average value of a home bought under Help to Buy is less than £180,000.

Comments (3)

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1:56pm Mon 11 Aug 14

stevoe says...

A Coalition political bubble so that house prices go up which they hope will lead to a homeowner feelgood factor and help their re-election. What I find amazing is the near £10 billion government commitment to this scheme when we are told nearly every day that there is no more money for the NHS, and we have to reduce govt borrowing. We do need more houses built, including a large proportion of affordable social housing. This would be far more effective in reducing the social security housing benefit bill. Oh, but I forgot, the increasingly subsidised private rental market are thought of as natural Tory voters - don't want to upset them. When will we have a government that does what is right for the majority of this country rather than one whose only aim seems to be to get themselves re-elected?
A Coalition political bubble so that house prices go up which they hope will lead to a homeowner feelgood factor and help their re-election. What I find amazing is the near £10 billion government commitment to this scheme when we are told nearly every day that there is no more money for the NHS, and we have to reduce govt borrowing. We do need more houses built, including a large proportion of affordable social housing. This would be far more effective in reducing the social security housing benefit bill. Oh, but I forgot, the increasingly subsidised private rental market are thought of as natural Tory voters - don't want to upset them. When will we have a government that does what is right for the majority of this country rather than one whose only aim seems to be to get themselves re-elected? stevoe
  • Score: 0

9:20pm Mon 11 Aug 14

Doogie 46 says...

Perhaps after giving this this silly ineffective woman oxygen for her half baked opinions, the WN should interview some of the people helped by the scheme and let us see if they are happy with their lot and accept sensible debt as the only way to home ownership.
Her comments on house building (or lack of it) could almost be taken seriously if HER party had managed even a moderate newbuild programme during their time in office. Would I be right in thinking that the boom time for private landlords raking in housing benefit was under New Labour before the bankers (showered with knighthoods and peerages by guess who....) brought about the financial crisis which made the "end to boom and bust" chancellor look rather red-faced.
Again, am I right in thinking that the Consevatives are (at the risk of upsetting those wicked tory - voting private landlords ) trying to reduce the £billions spent on housing benefit by New Labour?
There is merit in what stevoe says - perhaps a sustained programme of social housebuilding (rather than tagging a few "affordable homes" on to each private housing development) might be needed but no party seems to find that an attractive proposition.
Perhaps after giving this this silly ineffective woman oxygen for her half baked opinions, the WN should interview some of the people helped by the scheme and let us see if they are happy with their lot and accept sensible debt as the only way to home ownership. Her comments on house building (or lack of it) could almost be taken seriously if HER party had managed even a moderate newbuild programme during their time in office. Would I be right in thinking that the boom time for private landlords raking in housing benefit was under New Labour before the bankers (showered with knighthoods and peerages by guess who....) brought about the financial crisis which made the "end to boom and bust" chancellor look rather red-faced. Again, am I right in thinking that the Consevatives are (at the risk of upsetting those wicked tory - voting private landlords ) trying to reduce the £billions spent on housing benefit by New Labour? There is merit in what stevoe says - perhaps a sustained programme of social housebuilding (rather than tagging a few "affordable homes" on to each private housing development) might be needed but no party seems to find that an attractive proposition. Doogie 46
  • Score: 0

10:54am Tue 12 Aug 14

green49 says...

Doogie 46 Tell me WHAT IS AFFORDABLE HOUSING?
Doogie 46 Tell me WHAT IS AFFORDABLE HOUSING? green49
  • Score: -3

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