Ministers’ flagship “Help to Buy” housing support scheme is set to be undermined by banks refusing to take part, the former head of the Council of Mortgage Lenders has warned.
The scheme, which has been compared to the US’s Fannie Mae and Freddie Mac, was the centrepiece of the March budget and could see government guarantees on some £130bn of home loans over three years.
But after two months the banking industry is still unclear on the precise mechanics of the scheme, not least how much money banks will
George Osborne has been touring the TV and radio studios this morning talking about the deals he has managed to strike with some of the smaller government departments for how they are going to cut their budgets in 2015/16. Talking about the settlements made with departments including Justice, Energy and Communities, the chancellor told the BBC:
We are now about 20 per cent of the way there with a month to go. I don’t think any chancellor in history has made this much progress with a month to go.
Osborne still has a huge amount to achieve in the next month, particularly in the face of intransigence from big departments such as the MoD and the Home Office. But in the middle of the spending round process, another decision on a massive item of government spending will also come a step closer.