The budget

johnthebar

tiny_tear wrote: »

I read the things on the metro this morning.
it just doesn't make sense also that this loan seems to be available only to people buying (overpriced) new builds - so it will help the developers trying to sell the new builds but not help people like me trying to sell my FTB 1-bed flat

This was my first thought. This seems like a scheme designed to prop up the house builders and buoy the prices of new builds and not about what FTB's actually want.

gingertips

the scheme is effectively giving construction industry £250m of our money.

Noone else benefits - yes the building firms have to put down 10%, but at same time they will factor that into the cost of the property. All it means is that the FTB this is "helping" will end up buying property for an extra 10% of what it would have sold for AND at the end of 5 years they will start being charged interest on the 20% they were loaned...which if interest rates increase (which we know they will have to to tame inflation) then this could be a recipe for disaster...those FTB the government were supposed to be "helping" will end up being evicted...

Considering the scheme will only help 10,000 people and considering how many first time buyers there were in 2004 - 700,000 - compare this number to the 2010 FTBs which was only 347,000, this is complete rubbish & will have no impact apart from making some cash for the construction firms who get in there first.

FTBS want affordable property....not part own schemes or any other scheme which props up a housing bubble...we need to get real and let interest rate rises take care of things & let those who took out lots of BTLs sell up & watch the hosing prices drop to realistic and achievable levels.

What Im completely bemused about in all this is the complete U turn by Grant Shapps. June 9th 2010 he stated his lack of support for government backed schemes. Now hes all over it...


"Shapps cast some doubt over the future of government-backed shared-ownership schemes offering first-time buyers financial help to buy a home, asserting that “the cash for affordable housing has run out”. While current shared ownership schemes will not disappear in the short term, Shapps is looking to the private sector to provide more similar schemes."

poppysarah

Lokolo wrote: »

It's only interest free for the first 5 years.

.

And what interest after?
Do you pay it back first from the mortgage money?

poppysarah

gingertips wrote: »

FTBS want affordable property....not part own schemes or any other scheme which props up a housing bubble...

Indeed.

It's a shame they've missed this.

And they've given more breaks to those who invest in property.

Stu_Dent

One question, one point..

1) If i'm interested in using this scheme, how do I get involved and when will it start? (maybe thats two questions..)

and surely if there are thousands of people buying first time, the subsidising of a mere 10k flats/houses shouldnt have much effect on the prices that are offered?

HAMISH_MCTAVISH

Excellent scheme for FTB-s.

Interest free money for 5 years is very MSE.

ILW

HAMISH_MCTAVISH wrote: »

Excellent scheme for FTB-s.

Interest free money for 5 years is very MSE.

Lower prices would be even more MSE.

HAMISH_MCTAVISH

ILW wrote: »

Lower prices would be even more MSE.

And magic fairies giving out free cash would be even more MSE.

But you've got more chance of that than any significant falls in UK house prices.

The choices are:

1. Take the cheap money and pay the price for the house.

2. Don't take the cheap money and pay the price for the house.

3. Dont buy, and pay for the landlords house instead.

Either way you pay....

ILW

HAMISH_MCTAVISH wrote: »

And magic fairies giving out free cash would be even more MSE.

But you've got more chance of that than any significant falls in UK house prices.

The choices are:

1. Take the cheap money and pay the price for the house.

2. Don't take the cheap money and pay the price for the house.

3. Dont buy, and pay for the landlords house instead.

Either way you pay....

I agree, at least this scheme is only for new builds so something positive may come out of it.

Gwhiz

Has it been stated on here that to qualify, the first time buyer will have to have a household income of less than £60,000 and will have to buy a new-build home.