Osborne dismisses house price fears

When asked whether the effect of the scheme in the short to medium term would be to raise house prices the Chancellor replied that the Office for Budget Responsibility had not changed its house price inflation forecast and that he expected prices to rise ‘broadly in line with long-term average rate of earnings growth'. Speaking to the Treasury Select Committee, Osborne finally confirmed details of the mortgage guarantee scheme would be released within two weeks. Mortgage lenders involved in the guarantee scheme will pay a fee to the government intended to cover administration costs, e...