Oct 13 The chief executive of Lloyds Bank
has warned that the government's "Help to Buy" mortgage
scheme will risk creating a dangerous bubble in property prices
unless steps are taken to boost the supply of new housing and
free up planning restrictions, The Financial Times reported.
The FT quoted António Horta-Osório, the CEO of Lloyds as
saying, "It is important that planning permits, building
authorisations and social housing projects are (liberalised) so
that the increase in (mortgage) transactions does not lead to a
substantial increase in house prices."
"I think the scheme should be focused outside London and the
southeast. (In the rest of the country) you have nothing close
to a housing bubble," the FT quoted him as saying.
Lloyds, which is 33 percent owned by the British government,
could not be reached immediately for comment.
Lloyds, along with RBS, HSBC, Santander UK
and Barclays, has already signed up for scheme
which, in exchange for a fee, will give banks greater protection
The only big lender yet to commit is the customer owned
Nationwide, one of the few lenders already offering
mortgages to buyers with small deposits.