Smee warns of market distortion
Smee expressed his concerns yesterday whilst being questioned by the Treasury select committee.
He told the committee: “One of the risks with housing incentive schemes is they create spikes around the time they come to an end . . . then a period of dead calm thereafter.”
He added that he would not want the scheme to run for much longer than the planned 3-years and that he was unsure if the Treasury has an “exit strategy”.
However, Smee said there were lots of mitigating factors against a housing bubble and that regulatory restraints should ensure lenders did not give mortgages to people who could not afford to them.