Newbuy - Another flop

Graham_Devon

Newbuy, launched 3 months ago, was supposed to help get 100,000 potential housebuyers buying by 2015.

However, so far, in the first 3 months, the scheme has only supported 250 households.

If the current monthly figure continues, Newbuy will serve less than 3,000 households by it's target date. The target is that 8,000 people will complete every quarter.

There are currently 1,300 reservations, though this falls far short of the 8,000 per quarter completion target.

A government spokesperson has said that it takes up to 6 months to complete a typical purchase, therefore we can't draw any conclusions from this data as yet. However, these are FTB's, buying newly built homes. So it's not a typical purchase as no chain is involved, so seems to be a bit of smoke and mirrors there.

On saying all of that, as the article suggests, it's a little too early to judge the success of Newbuy, however, if experience and patterns are drawn from previous schemesm it's looking a little like another flop.

http://www.thisismoney.co.uk/money/mortgageshome/article-2209481/Just-250-home-purchases-months-NewBuy-Guarantee-scheme.html

fwog

It a bit like the regional growth fund http://www.ft.com/cms/s/81f1361c-fb92-11e1-87ae-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F81f1361c-fb92-11e1-87ae-00144feabdc0.html&_i_referer=http%3A%2F%2Fwww.airgunbbs.com%2Fshowthread.php%3F620634-Regional-growth-fund-scandal#axzz268uJpA00

or even recently, the flood defenses which were sanctioned 4 years ago.
Someone got the money and sat on it.

purch

Lenders do not want to take on the additional risks added by NewBuy and FirstBuy.

thegirlintheattic

We considered this and the equity loan scheme but the numbers just don't add up for us, or indeed any of our FTB friends.

RUN_RABBIT_RUN

it's another one of these government schemes propping up the housing market that we keep hearing about on here. those 250 households really do make a dent.....

honestly - if they run a successful scheme,it's criticised as propping up the market, but if it's one like this that doesn't get going, it's criticised as being 'a flop'

do make your mind up

Thrugelmir

Graham_Devon wrote: »

However, so far, in the first 3 months, the scheme has only supported 250 households.

Better than none.

Once the scheme's been running for 12 - 18 months. Then whether it's working or not will be measurable.

sabretoothtigger

Lend me money for 30 years at 4% like they do in USA, that'll stimulate me

HAMISH_MCTAVISH

sabretoothtigger wrote: »

Lend me money for 30 years at 4% like they do in USA, that'll stimulate me

You can now borrow for 25 years fixed at 5.29%.

Not there yet, but heading in the right direction.

jbreckmckye

Graham_Devon wrote: »

Newbuy, launched 3 months ago, was supposed to help get 100,000 potential housebuyers buying by 2015...

What's the source on this article? Are they relying on Land Registry data? Because there's a latency on Land Reg data for individual purchases.

Loughton_Monkey

jbreckmckye wrote: »

What's the source on this article? Are they relying on Land Registry data? Because there's a latency on Land Reg data for individual purchases.

You should read the link he included. It quotes the Home Builders Federation. The key indicator of potential 'flop' is the number of reservations. Land Registry would not be involved at this early stage.

CLAPTON

why would any first time buyer spend money on a small poky overpriced property just for the pleasure of helping pay for 'affordable' housing for social tenants?

social housing should be paid for by we the taxpayers and not first time newbuild buyers