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"Fathom Consulting, run by former Bank of England economists, said that the scheme, which will give buyers with just a 5pc deposit help onto the housing ladder, could see a return to the lax lending practices seen before the financial crisis.
“Help to Buy is a reckless scheme that uses public money to incentivise the banks to lend precisely to those individuals who, absent the scheme, would not and should not be offered credit," said Andrew Brigden, a senior economist at Fathom.
"Had we been asked to design a policy that would guarantee maximum damage to the UK’s long-term growth prospects and its fragile credit rating, this would be it.”
The consultancy said that the scheme could push up house prices by almost 30pc from the current average of £233,000, according to the Office for National Statistics."
Source: Help to Buy 'bubble' could push house prices up by 30pc - Telegraph
"Fathom Consulting, run by former Bank of England economists, said that the scheme, which will give buyers with just a 5pc deposit help onto the housing ladder, could see a return to the lax lending practices seen before the financial crisis.
“Help to Buy is a reckless scheme that uses public money to incentivise the banks to lend precisely to those individuals who, absent the scheme, would not and should not be offered credit," said Andrew Brigden, a senior economist at Fathom.
"Had we been asked to design a policy that would guarantee maximum damage to the UK’s long-term growth prospects and its fragile credit rating, this would be it.”
The consultancy said that the scheme could push up house prices by almost 30pc from the current average of £233,000, according to the Office for National Statistics."
Source: Help to Buy 'bubble' could push house prices up by 30pc - Telegraph
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