UK housing bubble fears

British housebuilders and mortgage lenders called for more clarity on how the government will wind down a support scheme for struggling housebuyers which has boosted developers’ profit forecasts amid fears of a new property bubble.

Demand for houses and mortgages has risen sharply in recent months since finance minister George Osborne introduced a programme of loan guarantees for aspiring homeowners with small deposits.

Data from mortgage lender Halifax showed house prices rose at their fastest annual rate in nearly three years in the second quarter while banks reported a sharp rise in mortgage lending.