Taylor Wimpey chief warns against H2B
Speaking to the Telegraph Redfern said he felt experts were “quite right to worry” about the distorting impact the Chancellor’s flagship policy could have on the housing market and has called for tighter management of the scheme.
Redfern argued that whilst the scheme was helping the housing market “over the bump” it should not be left in place indefinitely.
He said: “Where I would agree with the concerns is if successive governments find it too difficult politically to exit [Help to Buy] – that’s where there is a genuine hazard.
“I think there needs to be thought given now to a sensibly managed withdrawal – even if the timing isn’t firm, at least what the methodology is, because as we get closer to that date, it will start to figure more highly in the minds of banks and individual home-buyers.
“Everybody needs a sense of confidence about what the plan is.”
In May, Sir Mervyn King, former governor of the Bank of England, warned that Help to buy could leave the housing market dependent on the state.
King said “We do not want what the United States have, which is a government-guaranteed mortgage market which they are desperately trying to find a way out of.”
The International Monetary Fund has also warned against the scheme having recently said there was a risk that the scheme could boost house prices and not supply.