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Tyrie welcomes end of help to buy

30 September 2016

The Treasury Committee Chair, Rt Hon. Andrew Tyrie MP, comments on the Chancellor's announcement that the Help to Buy: mortgage guarantee scheme will not be extended beyond the end of the year.

Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, said:

"This is welcome news. The Help to Buy mortgage guarantee scheme will not be missed. The Treasury Committee identified a number of problems with it, not least that it would inflate house prices and create a substantial liability for the taxpayer.

Government meddling in the mortgage market is fraught with risks and unintended consequences. The big challenge is to address the undersupply of homes, both to rent and to buy.

Property taxation remains distortive. Taxpayer subsidies for home ownership increases demand and prices, and may do little or nothing to increase supply."

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