Budget 2013 live....

michaels

Turnbull2000 wrote: »

The newly announced scheme is for all properties.

Not limited to first time buyers nor owner occupiers?

Actually this seems like a better property market intervention, currently BTL landlords can outbid FTBs given a decent wedge of capital, this will level the playing field.

I am however doubtful about the govt taking on the risk but I guess unlike other countries we will never have more properties than people so there will be demand even if in the depths of recession it is the govt who pays the bills via HB/SMI.

Turnbull2000

michaels wrote: »

Not limited to first time buyers nor owner occupiers?

Actually this seems like a better property market intervention, currently BTL landlords can outbid FTBs given a decent wedge of capital, this will level the playing field.

I am however doubtful about the govt taking on the risk but I guess unlike other countries we will never have more properties than people so there will be demand even if in the depths of recession it is the govt who pays the bills via HB/SMI.

Absolutely. I said in the pre-budget thread that the government will aim to help first-time buyers compete with investors. Seems he's looking to pull off some stronger house price growth in the year up to the election.

IveSeenTheLight

wotsthat wrote: »

If, when my kids were two years old, I thought there was a realistic chance that in 20 years time they would face a grim future not able to afford a house, petrol, 'essentials' etc. and be saddled with the unmanageable debt of previous generations I'd would've cleared off to somewhere else. Why would you stay and subject them to that?

I intend to let them settle wherever they choose, not decide for them.

Give them the best education I can is my main aim.

I also have invested so that if they have issues being able to purchase property in the future on their own accord, I'll be able to give them a significant help onto the ladder.

Graham_Devon

After listening to various views on the radio, my initial "oh my god this will push house prices up" has been dampened a little.

It might help them stay where they are, like all the other previous schemes before that, but it's unlikley to push them up in any real surge.

Why? People are still grappling with the cost of living. The public sector is still on an 1% wage rise cap. People are still losing jobs (but more importantly, having to choose part time instead of full time).

There simply isn't the money (nor confidence) to push prices up that much.

Plus people still can't get interest only loans, so they still have the problem of paying the full repayment amount each month as one commentator pointed out when few were relating it to sub prime.

ILW

Graham_Devon wrote: »

After listening to various views on the radio, my initial "oh my god this will push house prices up" has been dampened a little.

It might help them stay where they are, like all the other previous schemes before that, but it's unlikley to push them up in any real surge.

Why? People are still grappling with the cost of living. The public sector is still on an 1% wage rise cap. People are still losing jobs (but more importantly, having to choose part time instead of full time).

There simply isn't the money (nor confidence) to push prices up that much.

Plus people still can't get interest only loans, so they still have the problem of paying the full repayment amount each month as one commentator pointed out when few were relating it to sub prime.

Probably just means that the public sector won't be buying houses.

dryhat

I agree Dev.

The HPI nutters are salivating at the prospect of another boom which may not materialise.

The only winner is the bank.

IveSeenTheLight

Graham_Devon wrote: »

After listening to various views on the radio, my initial "oh my god this will push house prices up" has been dampened a little.

Graham, this will have been a small sample of the population.
There will always be people who cannot afford to buy.

For those with the means and it seems the budget is aiming to help more, it will give them a better opportunity to become a property owner.

wotsthat

Graham_Devon wrote: »

After listening to various views on the radio, my initial "oh my god this will push house prices up" has been dampened a little.

It will put upwards pressure on house prices but, as you say, there are still downward pressures too. I think prices will rise as a result but initially the transactions will be people offloading BTL's and renters becoming owner-occupiers with little impact on price.

Apparently the CML are moaning that the fees to be levied on lenders are high enough to be discouraging. Only saw a BBC reporter's tweet so could be BS.

John_Pierpoint

HAMISH_MCTAVISH wrote: »

Better buy a BTL now then Graham, and let someone else buy a house for your son.

Got to make sure they pick partners, so that both families have bank of mum and dad potential.

bit like being a farmer, dare not marry a woman who in not independently wealthy. [and don't try to swap speeding points].

IveSeenTheLight

wotsthat wrote: »

I think prices will rise as a result but initially the transactions will be people offloading BTL's and renters becoming owner-occupiers with little impact on price.

Sorry, have I missed something. Why will LL's be offloading BTL's?