Housing and Planning

Government guarantee on five per cent mortgages a “bad idea”

Julian Jessop quoted in City AM

The government has announced a scheme which will give a guarantee to lenders across the UK that offer mortgages to people with a deposit of five per cent on homes with a value of up to £600,000.

IEA Economics Fellow Julian Jessop was quoted in City AM calling the scheme “a bad idea”. He argued: “It will simply make it easier for young people to overstretch themselves in the housing market, while artificially stoking demand and raising house prices even further. The focus should instead have been on increasing housing supply”.

Read the article here.