legally qualifying as a FTB re stamp duty

Fire_Fox

silvercar wrote: »

I'm assuming the adult child won't be in a position to buy until at least the end of this scheme, so using their name won't effect them now. Maybe a student currently.

Except this little scam could affect their ability to get student finance, or means-tested benefits if they drop out/ complete their course and don't immediately find work. If the parents unexpectedly need to claim support for mortgage interest, only one parent owns half a house and you can't easily let to family ... IMO it's rarely a good idea to drag relatives into working the system, there are too many ways for it to backfire. Look at all the threads we have on people buying council houses or early inheritances and the nightmare that creates.

Fire_Fox

hamblettamaud wrote: »

Actually, I agree. And not just cos I'm not a first time buyer. If this scheme is expected to get the property market moving again then it's doomed to failure. There are many non-FTBs who are struggling too.

I think it can work, whether it is the best or right solution I can't say. Traditionally people move up the ladder (in terms of property size as well as value) and then either drop right back down to the bottom as they downsize in retirement or off the ladder altogether as with 'natural wastage'. If FTBs don't replace them the pool of homeowners shrinks and demand falls.

If some people in the middle cannot afford to move but there is still new blood coming in at the bottom, the property market will be slow and perhaps stagnate rather than boom or bust. If you encourage people on the mid-rungs who are struggling financially to move up the ladder then people are going to start getting repossessed.

People on the mid-rungs are more likely to be over-committed than an FTB - kids, car finance etc. Is it helpful to encourage them to take on a larger mortgage and bigger bills? You can give those people a boost with child benefits and tax credits and free computers and social tariffs, or the many other schemes that are closed to single adults of working age.

At least that is my (rudimentary) understanding.