In an analysis of the housing market, Rob Wood, UK economist at Berenberg Bank, said market conditions have improved “sharply” since March, when George Osborne, the Chancellor, unveiled his planned subsidy on up to £130bn of mortgage debt, and that the policy “is not a risk worth taking” any longer.
Albert Edwards, economic strategist at Societe Generale who has described the scheme as “moronic”, added that the market is already in the midst of a bubble and a bust is “inevitable”.
Their concerns add to the growing chorus of voices warning that the Help-to-Buy guarantee, to be launched in January, could damage Britain’s longer-term prospects. Vince Cable, the Business Secretary, and Barclays chief executive, Antony Jenkins, have expressed fears of a housing boom
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