The European Commission has spoken and the Help to Buy scheme will be reined in due to increasing house prices across the UK.  This is part of George Osborne’s legacy as captain of the economic recovery and it will be missed by many due to its ability to gain housing for those who cannot afford it.

The rise in house prices particularly in London is the reason for the halt on the programme.  The commission has also made recommendation that council tax should be increased.  The EC report also states that tax must be increased due to the lack of appropriate modifications made over time to keep up with the increase in property values.  Some property owners are now paying less for luxury type properties compared with those with lower value properties.

The recent EC report sent the message by stating: “The Commission recommends that the UK deploy appropriate measures to respond to the rapid increases in property prices, notably in London, for example by adjusting the Help to Buy 2 scheme and mitigating risks related to high mortgage indebtedness.”

The European Commission also stated there needs to be more effort in improving the amount of available housing not just for the current needs but the needs in the future.

A government source commented on the impact of Help to Buy, saying: "Figures last week showed htb has helped thousands of first time buyers on steady incomes buy properties and finally realise the dream of home ownership. It is an aspirational policy that will remain a key part of our economic plan.

"But we are the first to say we must be vigilant which is why we specifically gave the Bank of England powers to intervene in the housing market - they should not hesitate to use them if they see fit."