What impact is this likely to have? With the news that Help to Buy has been extended in the Budget until 2020, there is an apparent concern for home owners and new buyers of a property price bubble, especially in the London and South East regions.
Word from the government is that Help to Buy is driving construction in the UK, and is a key contributor to the 16% leap in new housing projects over the last year.
Views on this extension has been split however, in the year since its introduction the scheme has helped to increase mortgage lending since the crash in 2008, but has also contributed to house price inflations of almost 10% according to figures from the Guardian. Some politicians believe the scheme should be reviewed to avoid the risk of another property linked boom-bust cycle, which caused the economy so much damage previously.
On the other side of the fence, the extension is welcome news for home buyers and the construction industry, Britain most certainly needs more homes, and extending the Help to Buy scheme will enable the industry to deliver that.
Overall it will be interesting to see how property measures in the new Budget will affect the market outside of the London and South East regions. The latest figures from the government show that more than 17,000 people bought homes under the first nine months of Help to Buy, 77% of them were outside London and the South East. So although there is talk of bubbles potentially breaking on the horizon in these regions, the latest figures actually suggest the recovery is going to be a more positive one and prevalent across the country.