Javier Ruiz explains what happened in the UK after he did something similar to what Spain is going to do now

Javier Ruiz, a journalist from Cadena Ser, explained how a scheme similar to the one to be launched by the government this Tuesday worked in the UK, which would create a line of guarantees through the Official Credit Institute (ICO). 20% of the mortgage on the first dwelling and the purchase of land from the Ministry of Defense to build 20,000 homes.

Ruiz analyzed the balance left by the British system after 10 years of operation and noted that the British Parliament itself issued a report after that decade and literally says: “The help-to-buy scheme inflates prices, it does more than is invested in subsidies, especially in areas where the need is greatest.” That money would be better spent on increasing the supply of social housing.”

“What the government has been asked is: to redirect that money by telling them that this is not a good investment of taxpayers’ money and urging the British government to direct that money to build social housing,” says the journalist, who stresses that “this could start happening from this year, Because that scheme over there ends in 2023.”

“So what we have at the moment is a British experience that says that the two doors opened by the Spanish government are building more social housing and providing assistance and guarantees, and the one that works is the first. And the right door is building more housing. This is what the British Chamber says,” Ruiz insists.

The scheme, as noted, caused financial times Call it “disaster” and guardian from “fraud”.

“Having said that, we have spoken with the government and some differences with this scheme have been flagged. They say that in Spain this guarantee system will be introduced until 2025, that is the new expiration date. So it is said that this will not last a decade as it is The case there. In addition, it is said that it is less: here it will cover 50,000 buyers, 0.06% of young people. 99.4 are excluded “, the journalist explains.

And more: “And the government says that this scheme is much smaller because the British project has reached 375,000 citizens. And one more mileage: the biggest part of the scheme is still the construction of social housing. It is a temporary measure that ends in 2025. Here it cost 4,000 million pounds, in the UK 27,000 million pounds, so there are notable differences, as the government says,” says Javier Ruiz.

But it ends with a blunt warning: “Nevertheless, temporary or not, temporary or not, aid to purchases drives up prices. Experience has shown it, say our bubble and the House of Lords.”