View more on these topics

Lloyds warns of Help to Buy bubble without more houses

Lloyds Banking Group is warning the Government’s Help to Buy scheme will create a housing bubble unless it is introduced alongside significant planning reforms.

In an interview with the Financial Times, Lloyds chief executive António Horta-Osório said the scheme needed “tweaking” and that its main focus should be outside of London.

Horta-Osorio joins Shadow Chancellor Ed Balls by calling on the Government to do more to boost housebuilding in order to make Help to Buy work.

The second part of the scheme has also come under fire from Business Secretary Vince Cable, the ex-Bank of England governor Mervyn King and the International Monetary Fund.

Horta-Osorio said: “It is important that planning permits, building authorisations and social housing projects are [liberalised] so that the increase in [mortgage] transactions does not lead to a substantial increase in house prices.”

He added: “I think the scheme should be focused outside London and the southeast. [In the rest of the country] you have nothing close to a housing bubble.”

Lloyds brand Halifax last week announced the range of products it would be offering under the second part of Help to Buy, including a 5.19 per cent two-year fixed rate available to 95 per cent loan-to-value. 



Neil Woodford to leave Invesco

Invesco Perpetual star fund manager Neil Woodford is quitting to set up his own fund management business. Woodford, the country’s most popular UK equity income manager, will leave Invesco Perpetual on 29 April and hand over his £13.9bn Invesco Perpetual High Income and £10.6bn Invesco Perpetual Income funds to Mark Barnett, who has been part […]


Capital Economics predicts 5% house price rises as it reverses forecasts

Capital Economics has drastically changed its house price forecasts to 5 per cent growth in both 2014 and 2015 after predicting a fall of 3 per cent next year just a few months ago. The economists, known for their pessimism on UK housing, are also predicting house prices rises of 6 per cent this year […]


Out of context

“I am not sure I have ever been accused of being macho.” Labour leader Ed Miliband rejects claims he was involved in leaking stories and spinning against his allies and enemies alike. “Here’s a picture of a pie. I like it because I’m Scottish.” The Lang Cat principal Mark Polson does little to abate his […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. The recommendation to shift the regional focus away from London is long overdue. Without this re-focus we may all pay the price in 2015/16.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm