Councils helping FTBs?

Running_Horse

Or trying to breathe life into the corpse of the housing market?

http://www.bbc.co.uk/news/business-12754818

I have nothing against helping first time buyers, but most schemes end up rewarding the wrong people for the wrong reasons. Can't politicians just resist the urge to interfere?

Sibley

It's been reported on Sky and our ind friends at HPC have weighed in their nasty comments. :rotfl:

I've struck back of course.

http://news.sky.com/skynews/Home/UK-News/First-Time-Buyers-To-Be-Helped-Onto-Property-Ladder-By-Local-Authority-Deposit-Scheme/Article/201103315952954?lpos=UK_News_First_Home_Article_Teaser_Region_2&lid=ARTICLE_15952954_First_Time_Buyers_To_Be_Helped_Onto_Property_Ladder_By_Local_Authority_Deposit_Scheme

DervProf

More meddling with the "free" market.

What next "donate a kidney as a deposit" ?

"Two major lenders today announced a scheme where FTBs struggling to find a deposit can donate a kidney, which the bank will sell on to cover the cost of the deposit."

Here's a better idea - employ some builders to start building homes. The government is facing two problems, unemployment and a shortage of residential accomodation. It doesn't take much imagination to think of a solution.

PasturesNew

There's no shortage of houses and no shortage of sensible lending.
The elephant is house prices.

poppysarah

Is it because the cash will be safer tied to property than in a bank?

mr_fishbulb

So lets say house prices drop, the owner falls behind with the mortgage payments, the bank steps in and repossesses the house, sells it and there is a shortfall to cover the mortgage. Do they take the council's money to cover it?

ILW

DervProf wrote: »

More meddling with the "free" market.

What next "donate a kidney as a deposit" ?

"Two major lenders today announced a scheme where FTBs struggling to find a deposit can donate a kidney, which the bank will sell on to cover the cost of the deposit."

Here's a better idea - employ some builders to start building homes. The government is facing two problems, unemployment and a shortage of residential accomodation. It doesn't take much imagination to think of a solution.

And where does the money to pay for this come from?

the.ciscokid

Sibley wrote: »

It's been reported on Sky and our ind friends at HPC have weighed in their nasty comments. :rotfl:

I've struck back of course.

http://news.sky.com/skynews/Home/UK-News/First-Time-Buyers-To-Be-Helped-Onto-Property-Ladder-By-Local-Authority-Deposit-Scheme/Article/201103315952954?lpos=UK_News_First_Home_Article_Teaser_Region_2&lid=ARTICLE_15952954_First_Time_Buyers_To_Be_Helped_Onto_Property_Ladder_By_Local_Authority_Deposit_Scheme

So you are advocating a reduction in public services, in order that tax payers money can now be directly tied up in bricks and mortar?

I don't think you have really thought through the wider implications of this type of policy tbh.

JonnyBravo

ILW wrote: »

And where does the money to pay for this come from?

Grrrrrr.
Curses.
He'd have got away with it if it wasn't for your pesky questions.

ILW

mr_fishbulb wrote: »

So lets say house prices drop, the owner falls behind with the mortgage payments, the bank steps in and repossesses the house, sells it and there is a shortfall to cover the mortgage. Do they take the council's money to cover it?

It appears so.

DervProf

ILW wrote: »

And where does the money to pay for this come from?

1. The saving made by not having to keep unemployed builders on benefits.

2. A proper government scheme to help FTBers. Not some "quick fix" financial magic trick, but a properly thought out scheme to aid real FTBers. BTL landlords need not apply.

If there is no money to invest in property building, then we really are in a mess, and it will only get worse.