A report published by the European Commission on 3 June, 2014 is calling for the UK government to increase taxes on higher value homes and adjust the Help to Buy Scheme in an effort to stem the rapid increase in house prices and increase availability.

The report is part of a series of economic policy recommendations by the European Commission to Member States aimed at strengthening the economic recovery.

The report says the UK has taken both demand and supply side measures in the area of housing and that although the supply of new properties has risen, it remains low and has fallen short of demand by a considerable margin.

European Commission president José Manuel Barroso said, "This is about helping member states firmly out of the crisis and back to growth, with the country-specific recommendations acting as a compass showing the direction. If politicians show leadership and summon the political will to see reform through, even if it is unpopular, we can deliver a stronger recovery and a better standard of living for everyone."