Jan Crosby, Head of Housing at KPMG, comments on the Help to Buy ISA scheme, saying it totally fails to address lack of stock - the fundamental cause of the housing crisis.
“The Help to Buy ISA scheme is an interesting giveaway, but completely fails to address the fundamental issue causing the housing crisis, which is lack of stock. While such a handout will make headlines, the only real impact it will have on the housing market will be an inflationary one."
“The house crisis is now so severe that by the time it takes the average person to save £12k in the ISA, the price of an average house will have soared by £50k, based on the latest statistics from the OBR."
“Instead the Government must introduce long term measures to help us build the homes we need. One way to increase investment into the housebuilding sector and get Britain building would be to change the rules surrounding Venture Capital Trusts and allow them to invest in housing development."
“It would be better to have an ISA to help fund the building of new homes - not the buying of them.”
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Zoe Sheppard, KPMG Corporate Communications
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.