H2B has “had minimal impact”

Ryan Fowler

April 10, 2014

Speaking at the HSBC Great Housing Debate in Westminster earlier today Dockar said Help to Buy had been the catalyst for the return of 95% LTV products to market.

But Dockar was sceptical of the schemes benefit to the South East and London in particular.

He said: “In regards to London I am doubtful that it has had any significant impact. The schemes presence in London is virtually non-existent.”

Nigel Terrington, chief executive, Paragon Group, similarly dismissed Help to Buy for having a minimal impact on the market.

He said: “The problem of Help to Buy is that it does not address the fundamental issue for lenders.

“Banks and lenders have a wealth of cash; the central problem is that capital requirement levels are too high.”

He criticised the government for failing to address this fundamental issue, labelling the scheme a “sticky plaster”, used to cover up an unresolved problem.

The audience were undecided on the effectiveness of Help 2 Buy, with a 50/50 split on whether the scheme’s withdrawal would have any meaningful repercussions for market growth.

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