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House inflation then increased to a high point in 2014 of 9%. House inflation then held fairly steady at above 5% until late 2016 when houses prices began to fall away again. It is a normal reaction of the market for price growth to steady as the multiples to wage become untenable. In 2017 Philip Hammond extended the help to buy scheme with the injection of a further £10 billion. This was despite warnings from Morgan Stanley that the previous help to buy scheme had done nothing to help house buyers, but had only pushed up new build house prices. However it was particularly important to the government to support house price inflation in 2017 as the London housing market was seeing deflation of prices. It is critical to the house of cards that the confidence in the London housing market is sustained. A reduction of foreign investors in the new build market in London would see the whole structure tumble.
House inflation then increased to a high point in 2014 of 9%. House inflation then held fairly steady at above 5% until late 2016 when houses prices began to fall away again. It is a normal reaction of the market for price growth to steady as the multiples to wage become untenable. In 2017 Philip Hammond extended the help to buy scheme with the injection of a further £10 billion. This was despite warnings from Morgan Stanley that the previous help to buy scheme had done nothing to help house buyers, but had only pushed up new build house prices. However it was particularly important to the government to support house price inflation in 2017 as the London housing market was seeing deflation of prices. It is critical to the house of cards that the confidence in the London housing market is sustained. A reduction in the number of foreign investors in the new build market in London would see the whole structure tumble.


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