MSE News: Government unveils plan to help home buyers

brit1234

On BBC newsnight the Housing Minister openly admitted that house prices were too high. Paxman ripped him apart and said the solution was too let house prices fall and they were likely to fall anyway. The housing minister said this is wrong and he said that he wanted to keep house prices static or slightly rising but falling slightly under inflation.

However what he failed to say is wages for many are currently frozen or falling. So his strategy will actually mean too high property costs for the medium to long term.

Through out the housing minister was made to look stupid and the solution was clearly given to stop trying to prop up the market and let it fall to its natural level.

http://www.bbc.co.uk/iplayer/episode/b017pd0z/Newsnight_21_11_2011/

About 25 mins in when program is on iplayer shortly

Good debate afterwards.

poppysarah

The sad problem is: nulabour bailed out the banks by us taking on the debt. That debt is housing debt and so if house prices fall the losses increase.

If house prices fall a lot (as they are going to sooner or later even if it takes the whole financial system with it) then the banks will be in more trouble.

Rather than having sorted the problem out, nulabour sold us out.

Everyone bothered by it should write to their MP.


The iplayer bit
http://www.bbc.co.uk/i/b017pd0z/?t=24m17s

burge23

The problems in the housing market are not just related to 1st time buyers! Many people are now stuck in properties that are too small for them but there's no way to move. However there is never even a sniff of help! We're in a 3 bed house but the third bedroom is a matchbox. My mother in law moved in with us (hubby, 6 year old son and me) 2 years ago due to retirement/ill health and has the matchbox! Because she has a small pension and lives with us she isn't eligible for any help and neither are we however we are subsidising her. Our utility bills have gone through the roof and between pay freezes, salary cuts and proposed pension increases there isn't a hope of us moving as there is no affordable housing big enough.

I've worked since I was 16, put myself through uni and never claimed benefits in my life except maternity pay (and I went back to work full time when my son was 51/2 month old paying ludicrous nursery fees). Sometimes, and I have to say increasingly these days, I wonder why I bothered as there seems to be no help for those who work hard (yet my taxes seem to go to lots of others!)

EchoLocation

I must say, I have been pleasantly suprised by the largely negative - and not just at bear mansions - reaction this 'plan' has provoked.

burge23 wrote: »

The problems in the housing market are not just related to 1st time buyers! Many people are now stuck in properties that are too small for them but there's no way to move.

Bizarrely, it would appear that this desperate herding of naive FTB's into these new builds is effectively taking them away from the bottom of the market activity, which is where their transactions are needed.

brit1234 wrote: »

Through out the housing minister was made to look stupid and the solution was clearly given to stop trying to prop up the market and let it fall to its natural level.

I almost feel sorry for Shapps, I can't workout if he's just a puppet having to toe the political line, or if he's genuinely clueless about the property market.

poppysarah

burge23 wrote: »

Because she has a small pension and lives with us she isn't eligible for any help and neither are we however we are subsidising her. Our utility bills have gone through the roof

Does she contribute to paying your bills?

Check you're on the cheapest energy rates (I think one company does cheaper rates if there's an oldie in the house)

razam

So there seems to be a consensus that this scheme has nothing to do with helping FTBs, and everything to do with helping house building compaines!

burge23

Hi. Yes mother in law contributes a bit to the bills but we've never raised that in the 2 years since she moved in and she couldn't afford it even if we tried. We're on a really good internet tariff with Eon but it's the fact that the house is now occupied daytime that kicks in. In addition she was quite ill recently so the heating is on much more than normal. we have finally educated her about turning things off (our electricity consumption went up 48% in the first 3 months after she moved in :eek: ) because she was leaving lights on, TV's computers etc. We also pointed out there was no sense in leaving windows open when the heating was on. :mad:

We've shopped around for everything, moved to Aldi and Lidl for our main shops and everything like it. we'll get there.....eventually!