Concerns over rush to launch Help to Buy second phase

Most papers report that fears have been raised over the PM's decision to rush forward the second phase of the Help to Buy scheme with warnings that it could backfire and prevent people getting on the property ladder whilst threatening to create a new housing bubble. Mr Cameron said: "I am not going to stand back while people's aspirations to get on the housing ladder, to own their own flat, to own their own home, are being trashed." He added that he had the support of NatWest, RBS and Halifax. In response Adam Marshall of the British Chambers of Commerce said: “With all the concern expressed about Help to Buy - rushing into it seems less than responsible on part of government.” Andrew Montlake of Coreco commented: "This is an extraordinary announcement by the government, especially as one of the biggest issues with part two of the Help to Buy scheme was that there was some concern whether lenders would be ready to introduce the scheme in January, let alone October." A leader in the FT argues that Mr Cameron should have reconsidered the scheme rather than bringing it forward, and adds that the Bank of England's Financial Policy Committee should have the power to examine the scheme whenever it wishes rather than just annually as is now the case. Peter McKay in the Daily Mail says that the last crash occurred largely because banks were lending 100% mortgages to people who could not afford them with the buyer and lender relying on the value of the property rising. He says that we were told this reckless lending would never happen again. He wonders though, isn't guaranteeing 95% mortgages a little reckless also. The Times' Anne Ashworth says the scheme looks likely to be the most controversial ever government housing package. The Daily Mail reports that NatWest and RBS banks are preparing to extend their opening hours to deal with a surge in demand for the state-backed mortgages.

Miliband's 'land grab' criticised

Ed Miliband has come under criticism after unveiling measures to extend towns into the countryside and seize land back from developers who are not building houses. Mr Miliband vowed to issue compulsory purchase orders to developers who had planning permission to build on their land, but refused to do so. He said they could also be fined. John Acres, of the planning advisers Turley Associates, said the compulsory purchase order threat was "worrying". "This looks suspiciously like a 'land grab' on private developers who may have sites that are stalled through problems of viability or stymied by planning conditions - which could delay rather than deliver new housing," he said. Graeme Leach, the chief economist at the Institute of Directors, added: "The fundamental problem with the housing market is the public-sector planning system, not private-sector builders. It's hard to imagine a more statist solution to a problem caused by the state." The Mail's Alex Brummer also weighs in on the debate. He argues that giving "draconian" powers to councils to seize land from property owners is an assault on ownership rights and risks corruption. Mr Brummer also notes that Labour has failed to recognise that the best brownfield land is public sector owned, thus it would just be seizing land back from itself.

Rightmove raise price rise prediction

Rightmove has tripled its forecast for house price rises in 2013. The company expects the average property price to increase by 6% this year, up from the 4% it predicted two months ago. At the start of the year it predicted prices would rise by 2%. It said the average asking price reached £245,495 in September, a 4.5% increase on the same month last year, although this was down 1.5% on August. It also reported 96,330 properties came on to the market in the past month, down by 9% on the previous four weeks and the lowest figure since February. The firm’s Miles Shipside, Rightmove's housing market analyst, said a drop in the number of homes being placed on the market will "prime the pump for an autumn price surge as buyer confidence and activity continues to increase". Prices are rising fastest in greater London, up 8.2% over the past year to £493,748, and the West Midlands, up 6.8% to £195,429. A separate report from the Building Societies Association has found that more than 60% of people now believe house prices will rise in the coming year, the highest proportion since it began collecting the data in 2008.

RICS suggest capping house-price growth

A 5% cap should be placed on annual house-price growth amid fears that the country is heading for a "bubble", according to a report from RICS. It says a message that the bank's financial policy committee will not tolerate price rises above a certain limit would restrict sellers' overblown expectations and discourage buyers from taking on too much debt. RICS suggested the bank could put the brakes on growth by imposing a ceiling on the sums banks are allowed to lend. It could put caps on the term of a mortgage and on the sums lent in relation to deposits or incomes, RICS argued. BoE governor Mark Carney signalled to MPs yesterday that he was open to moves to cool Britain's housing market if it began to over-heat.