Bank of
England Chancellor George Osborne had announced the extension of the Help toBuy scheme until 2020. What started as a one-year plan had ballooned into the
biggest free-for-all for homebuyers, and both local and foreign property
investors. This can just drive up the costs of properties everywhere in the
United Kingdom.
Properties in
London became exorbitantly-priced because private investors have purchased and
developed these lands with other investments in amenities and convenience that
the comforts and benefits it provides cost an arm and a leg. With Help to Buy, other
areas of the UK can probably increase in value the same way London has. London
may even inflate further.
The extension
of Help to Buy can result into a bubble burst. London is safe from a burst
because it is the capital and the bustling city of the United Kingdom with
almost-infinite business activity. However, for other areas, inflating and
deflating, especially in residential neighbourhoods, will mean a lower number
of homebuyers, or lower values of properties.
As home
buying interests increase all over the United Kingdom, the Help to Buy
extension could also cause drastic damages to the environment. Resources needed
to build new homes can decimate entire natural forests and quarries the UK has.
Will lots of
new homes be beneficial for the United Kingdom? We might become a country full
of houses, but not enough productivity and environmental concern.
