Misguided policy

ONE of the many pitfalls of the mortgage guarantee scheme (Observer, July 12) is that it stokes up house prices.

Another is it risks taxpayers’ money to further distort an already dysfunctional market. Hastings Borough Council has agreed two such schemes already; it’s putting £3 million into this misguided policy.

Instead of acting in the interests of first-time buyers, for whom lower property prices would be the greatest boon, Cllr Forward is “really proud that we were the first local authority in the south east to sign up to this mortgage scheme“.

Because many people have bought houses they couldn’t really afford, the Government is doing whatever it can to support house prices and banks.

Many in the business community think they should leave the housing market alone and either pay off debt or spend the money generating household income. Cllr Forward argues ‘the scheme will enable even more people to own their own home’, I’m sure that when she has a proper look at it she’ll find the opposite is true.

SAM STOLLER

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