Government have today offered everyone a chance to buy!

baby_boomer

There is no money in the budget :rotfl: whether it had been "set aside" :rotfl: or not.

HMG needs to go to the pawnbroker.

How can we suggest children shouldn't lie when we get fed such garbage from our government ?

I agree with the comments that these measures may encourage some buyers to defer.

On BBC breakfast they finally had the gumption to interview a first time buyer,priced out of the market, who objected to her hard earned tax money [almost an American phrase which will become increasingly more popular here in the next twenty years] being spent to subsidise homeowners who had overborrowed.

Toto

But this will do nothing to get the real property market moving will it? FTB are limited to buying new builds which means fewer FTBs for the older properties.

dudleyboy

"Sub-Prime Minister". I like it.

skap7309

haras_nosirrah wrote: »

This is an absolute disaster.

1) this announcement is going to put off first time buyers in the short term while the government make a decision.

NOTHING the government say will get me buying a house. All that matters to me is the very, very basic total cost of a house without ANY loans, schemes, rebates or incentives that are thrown from all directions. I am sick of hearing about 'something must be done' to keep prices high. As a FTB I DO NOT CARE. LET HOUSE PRICES LEVEL THEMSELVES OUT! When and ONLY when prices drop to affordable levels (ie. the bottom of the crash) THEN i will be buying. Rant over. :mad:

Toto

skap7309 wrote: »

NOTHING the government say will get me buying a house. All that matters to me is the very, very basic total cost of a house without ANY loans, schemes, rebates or incentives that are thrown from all directions. I am sick of hearing about 'something must be done' to keep prices high. As a FTB I DO NOT CARE. LET HOUSE PRICES LEVEL THEMSELVES OUT! When and ONLY when prices drop to affordable levels (ie. the bottom of the crash) THEN i will be buying. Rant over. :mad:

Exactly, debt is debt no matter how many chunks you slice it up into or how 'pretty' you make it look.

Houses are too bloody expensive, that's pretty much the end of the story really. When they are better value then I will buy along with quite a few other people I should imagine.

Paul_N_4

steadysaver wrote: »

Great news for those wanting to buy a new build shoe box, what about people who want an older property with room to swing that preverbial cat.

Never fear, its great news for you too. This silly scheme for helping FTBers will actually accelerate the crash on older properties. You are only eligible for the 30% loan if you're 1. a FTBer, and 2. buying a new build.

So what this scheme is actually doing, is diverting any would be FTBers towards new builds, where a deal is done between FTBer and developer, leaving all other older houses with even less demand. This scheme will not help chains. This scheme will not help underpin prices of older homes. This scheme will help developers trying to shift old stock and limit the price drops on them as much as possible. It may even help the developers build some new stock.

Ultimately its a scheme to bail out the developers, screw the FTBer after 5 years, and hopefully in the mean time get some more houses built.

baby_boomer

There is some good news:

Hazel Blears has said the the government help will only be worth £300 million. This is a drop in the ocean and looks more like a publicity stunt than a measure designed to have any economic impact whatsoever.

Ian_Griffiths_Halifax

For all those waiting until the prices have hit the bottom, how are you going to know it's hit the bottom? You'll always have people saying 'wait a bit longer and it'll drop further'.

Don't get me wrong. I don't support these proposals by the Government, as haras_nosirrah said, it won't help the housing market in general, just new house builders, and even then, it will be restricted to their pet builders. It won't be available through smaller local developers, forcing them into liquidation.

Already there is a complete farce over the Governments Homebuy schemes as they started out as Open Market or New Build but now they are restricted to New Build (limited builders) and they've even run out of money on that.

If FTBs are pushed in the direction of only House Builders, then all the 2nd/3rd/4th time buyers are going to be stuck where they are for a while, whether they like it or not.

If the Government are going to push ahead with this plan, they need to make it available to all FTBs, regardless of whether they are buying new or old, and that would keep pressure on the builders to keep their prices competitive while allowing people futher up the chain to move. It would also ensure that other businesses such as furniture shops, kitchen suppliers, carpet shops etc etc get a revenue stream rather than the 'furniture packages' that the house builders buy in from abroad, losing that income to the UK economy.

baby_boomer

Ian_Griffiths_Halifax wrote: »

If the Government are going to push ahead with this plan, they need to make it available to all FTBs

But they can't because they haven't got enough money - thank God.

The market is doing all it can to help first time buyers. Why do they need the government to try to "prop up the market" when that's the last thing they need?

mr_magoo_5

dudleyboy wrote: »

"Sub-Prime Minister". I like it.

Me too! Hope it sticks!:rotfl:

Please don't fall for this 1st time buyers,you will regret it in the long term.
What you need is a WHOLE house at an AFFORDABLE price that YOU will own at end of the mortgage term.

If you wait it will happen, houses will sell when they are affordable, let the market decide.