NewBuy Guarantee Scheme

tartanterra

This is the bit that gets me:

“That's why I'm pulling out all the stops for those who want to get on the property ladder, so from March the NewBuy Guarantee Scheme will be on hand to help people buying newly built properties with just a fraction of the deposit they would normally need.”

I had hoped we were going back to a society where you had to accumulate a decent deposit (10-20%), before anyone would lend you money to make what is probably the biggest purchase in your life, in one of the most uncertain times in recent history.

I realise that they are trying to get the construction industry back up and running, but the next step down from "minimal deposit" is "100% mortgage", and I don't think the Government should be encouraging a return to the way things were just a few years ago.

Pimperne1

ader42 wrote: »

This is good news for builders.

This is bad news for buyers (pay a 5% deposit and immediately you're in 5% negative equity).

This is very bad news for anyone trying to sell their pre-owned house (less demand for theirs).

Good news for builders (and for all of us if it kick starts house building again).

Good news for buyers (even if they pay a bit over the odds - it would beat renting hands down over the medium term).

Good news for people selling their pre-owned house (they will benefit from seeing people enjoying the beauty of property ownership - although there are some downsides for them too).

Graham_Devon

Pimperne1 wrote: »

Good news for builders (and for all of us if it kick starts house building again).

Good news for buyers (even if they pay a bit over the odds - it would beat renting hands down over the medium term).

Good news for people selling their pre-owned house (they will benefit from seeing people enjoying the beauty of property ownership - although there are some downsides for them too).

I think it's pretty obvious you believe this is a good scheme.

But I do wish you wouldn't hide behind the poor reasons above. Especially the last one which reaches the point of desperation.

How on earth can privatising the profits, while socialising the losses be a good thing? Especially at a time like now when there is so much uncertainty. Please explain this.

All this scheme says is that the free market is broken.

poppy10_2

Shocking the way Shapps is so blatantly in the pocket of the housebuilder corporations. He's not even trying to hide it any more. This scheme will benefit the housebuilder by allowing inflated prices, and the mortgage 'guarantee' only serves to indemnify the banks, not the budding house buyer. In what way does this scam possible benefit first time buyers?

heathcote123

Graham_Devon wrote: »

How on earth can privatising the profits, while socialising the losses be a good thing? Especially at a time like now when there is so much uncertainty. Please explain this.

It's not a good thing, it;'s a f*cking awful thing.

But it's also pretty damn hilarious.

Graham_Devon

poppy10 wrote: »

Shocking the way Shapps is so blatantly in the pocket of the housebuilder corporations. He's not even trying to hide it any more. This scheme will benefit the housebuilder by allowing inflated prices, and the mortgage 'guarantee' only serves to indemnify the banks, not the budding house buyer. In what way does this scam possible benefit first time buyers?

It's just more evidence that business controls the government.

I remember the discussion about the £50 rebate for South West Water customers, and at the time joking that that £50 would be eaten up by increases by the time it's paid.

We've another price increase to go yet, and already, more than half of that £50 rebate which won't come in until April 13, is already swallowed up.

South West Water made record breaking profits, released just after the rebate news last year.

Maybe it's always been the same with large companies dictating how things will be, but I;ve only recently started noticing it.

I'm just wondering how long all this increasing prices, price fixing and governments putting more and more taxpayer money into schemes which allow normal people to afford stuff can actually go on for.

How much taxpayer money will be at a liability if this scheme sells for instance 10,000 houses?

But it's all good, because we've only also got billions in the banks, which are also in trouble should house prices decrease. So it's a double whammy. We just seem to be continually increasing taxpayer exposure to higher prices, and hoping it causes higher prices.

Thrugelmir

tartanterra wrote: »

I had hoped we were going back to a society where you had to accumulate a decent deposit (10-20%), before anyone would lend you money to make what is probably the biggest purchase in your life, in one of the most uncertain times in recent history.

Lower deposit can be offset by a lower income multiple. Along with a requirement to have a repayment mortgage.

So not necessarily a high risk strategy. In fact far better that the period 97-08.

EchoLocation

Are there any official figures showing how many people have taken advantage of these new build government schemes?

Pimperne1

EchoLocation wrote: »

Are there any official figures showing how many people have taken advantage of these new build government schemes?

Not many, I expect that's why he said this:

“The pattern of the past has been to produce endless policies and initiatives that simply gather dust on Whitehall shelves and lead to inaction and inertia.

“But with the Prime Minister putting housing centre stage on the road to economic recovery, I am determined that we shall not repeat these mistakes of the past.

“That's why I'm pulling out all the stops for those who want to get on the property ladder, so from March the NewBuy Guarantee Scheme will be on hand to help people buying newly built properties with just a fraction of the deposit they would normally need.”

ader42

MrsRee wrote: »

Fantastic news. If only the HPC mob could see that it was a scheme for their benefit. You can lead a horse to water...

To be honest it depends if the person wants to buy a new build or not.
If you want to buy a new build for less this is a bad thing as it will improve demand. If however you want to buy a pre-owned home for less this is very good news as it will reduce demand for what you want to buy.