House prices ‘could shoot up by 13pc’

Yorkshire Post - Property - - PROPERTY -

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.

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