"The range of measures announced under the 'Help to Buy' scheme to kick start the housing market were much needed. However, RICS have cautioned that Phase 2 in particular, extending the scheme in January 2014 to include lending on second hand homes, could increase risk of a 'bubble' particularly in London and parts of the South East.
"This is why we recently called for a discussion on the possible use of 'speed bumps' for the housing market including curbing excessive house price inflation. RICS also called for a concise and clear exit strategy for Help to Buy. We are pleased by George Osborne's announcement today if it helps to moderate the highs and lows of the property market and ensure fair access for all. Additionally, the Bank of England is reported as promising to 'closely monitor' the housing market and intervene if it feels there is danger of a house price bubble.
"Ultimately though, housing supply is crucial to a healthy market. As we recommended in the RICS led Housing Commission, we need a plan as to how government and industry are going to close the housing deficit - through boosting housing supply in all tenures - whether owner occupied, market rent, affordable rent, shared ownership schemes and of course a genuine institutional private rented sector."