Economists heap pressure on Osborne over Help to Buy

Prominent economists have added to calls for the government to pull back from the mortgage guarantee element of its Help to Buy initiative, arguing it is no longer needed.

Former Monetary Policy Committee (MPC) member Kate Barker and Citi UK economist Michael Saunders, who previously supported the scheme, say an improving economy and stable house price growth have rendered it unnecessary, according to a report in the Financial Times. It follows suggestions from three former Chancellors - Nigel Lawson, Norman Lamont and Alistair Darling - for the scheme to be re-thought. Darling said successive governments continue "repeating the same mistakes", particularly in the housing market. The mortgage guarantee element of Help to Buy helps first-time buyers and ...