MSE News: Government unveils plan to help home buyers

propertyman

Throwing crumbs to those most likely to vote Tory.

Government should be setting out new towns and to heck with the nimby's putting in the infrastructure ( paid by council tax in due course) using workfare apprenticeships and contractors, and selling off the plots for private housebuilding, private renting and RSL's.

And tell larger companies no to rebuilding office blocks in central London, but offer huge tax incentives to take their jobs to these new towns. This is about survival not fiddling at the margins.

Turnbull2000

Isn't today essentially a double boost for property developers and the prices they can demand? Alongside the mortgage intervention, has shared-ownership not been given another boost too?

We now have two state subsidies that will allow house builders to hike prices (and bid for land) above what people could otherwise afford. This seems to be fundamentally against long-term affordability of housing.

yertiz_2

wastedtalent wrote: »

No-one will be able to buy them 2nd hand as the next gen of FTB's will have to buy new new builds.

The next generation of FTB's, hmmm, will this include those who have finished their university degrees with £27,000 tuition fee debt plus whatever other student loans for 'Maintenance'? Or may be those who unfortunately can't get a job (including graduates) because there are no jobs.
Must be time to get on the Council House list.

Butterfly_Brain

Create a new housing bubble, how novel !

cepheus

Agree with Mash!

skinnyman9000

This is ridiculous news, simply ridiculous.

New builds are already over priced, and this is simply encouraging them to remain so because they flog them to blind FTB's

skinnyman9000

Just to add, what does annoy me is that the government isn't making anything easier for FTB's. They're making it easier for them to get their hands on a house, but by doing so they're making the affordability worse. They're forcing FTB's to pay the inflated prices, they're forcing them to take on higher interest rates and repayments, and they're forcing them into instant negative equity. Also, certain FTB's may be able to afford the repayments now, at the initial fixed 2yr rate, but what happens when they fall onto the lenders standard rate, which is xx% plus base rate? All well and good whilst the base rate is low, what happens in 2-3yrs when its higher again? And the home owner won't be able to remortgage, but they're be in negative equity.

It all seems like a very selfish short term fix from their point of view, all this will do is keep house prices artificially high and drop unsuspecting people in the poop in 2-3yrs time

brit1234

So we are in an international economic crisis caused by irresponsible lending on housing. Which has lumbered the british public with huge debt.

Solution get a new generation of people in instant negative equity with over priced new builds which they will be trapped in. Then put the tax payer responsible for any loses rather than the builders putting the UK credit rating at higher risk.

:mad:

DVardysShadow

brit1234 wrote: »

So we are in an international economic crisis caused by irresponsible lending on housing. Which has lumbered the british public with huge debt.

Solution get a new generation of people in instant negative equity with over priced new builds which they will be trapped in. Then put the tax payer responsible for any loses rather than the builders putting the UK credit rating at higher risk.

:mad:

I have to agree.It is openly admitted in TFA

Hollingworth adds: "While high house prices are a problem, this scheme also focuses on the supply of homes by encouraging more housebuilders to build.
"As many are not building now, it is keeping house prices high. If they build more homes, it is an attempt to reverse that situation."

alunharford

In order to employ anybody, a business has to pay a reasonable living wage. Property prices in the UK are deliberately kept high to make the home-owning, voting boomers believe they're rich (ignoring the fact that they've got to live somewhere). That deception keeps the UK workforce more expensive than its counterparts abroad.

By propping up the housing market, the government has also shown its hand: it's clear that the government will inflate instead of being bold and sorting the housing crisis. When this new policy was announced, the pound immediately fell 1c against the dollar (wiping 1/150th off the value of everything in the UK).

With decisions like this, the situation is going to get pretty ugly over the next decade.