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OECD calls to control rising UK house prices

The UK government should consider more restrictions on the Help to Buy scheme as house prices continue to rise, an economic forecaster has said.

07 May 2014

Help to Buy is a two-pronged attempt to encourage activity in the UK housing market. Prices in many areas have risen since its launch.

The OECD has said that property prices were soaring when compared with rents and household incomes.

"Timely measures" could be used to stop the market overheating, it added.

Regarding the UK economy as a whole, the OECD said that the recovery had picked up to "a robust pace", and that an improving picture for jobs was assisting household consumption. It said the unemployment rate had fallen "more rapidly than expected".

It increased its forecast for economic growth in the UK for this year and next.

In November, it suggested that GDP would be 2.4% in 2014, but the prediction is now 3.2%. This is higher than the forecasts for the US (2.6%) and the Eurozone (1.2%).

For 2015, it previously predicted GDP of 2.5% in the UK, but the latest prediction is 2.7%.

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