One of the leading lenders involved in the HomeBuy scheme has voiced its concerns over the Government's proposal to include private sector participation. Nationwide have said that they are suspicious of the move, which could deter lenders already involved.
A spokesperson for the Bank of Scotland, says that there is no reason why the private sector should not participate in the scheme and be prepared to take some of the risks.
Our view
We wonder why big institutions want to keep any scheme with them? Is this about them making money and have a 'carte blanc' or is it about offering affordable housing? Any viable commercial enterprise should be allowed to participate. This will encourage competition rather than monopoly.