“Today’s Funding for Lending Scheme data for Q2 shows that mortgage approvals for home purchases have increased slightly indicating a follow on rise in net lending to individuals later this year.
“Common sense dictates that when you facilitate an increase in demand by making money more available you must increase supply or accept the consequences and in this case it is sky-rocketing property prices in London and the South East. The government needs to consider the easing off of support for London house prices by excluding London and the South East from the second Help to Buy scheme to be introduced next year.
“This will pull back mortgage support in these same regions to moderate demand and at the same time moving support to the rest of the country. The government needs to start making tough decisions on the housing market in order to get construction creating GDP growth whilst avoiding a housing boom in some parts of the country.”