House prices ‘could shoot up by 13pc’

HOUSE prices could rocket by between eight and 13 per cent next year, according to investment bank Morgan Stanley.

The bank says the Help to Buy scheme could pump up the market but may not be of any help to first-time buyers.

The bank’s prediction follows a warning by the OECD (Organisation for Economic Co-operation and Development) which said the Help to Buy 95 per cent mortgage scheme could push up prices but not increase supply.

Morgan Stanley also predicts that profits at Lloyds, Britain’s biggest lender, could soar by £1.17bn because of the scheme. It says profits at British banks could receive a boost to the tune of £1.81bn.