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.