House prices will INCREASE when Osborne's £130bn mortgage help scheme kicks in

liamfahy

Don't panic yet, I don't think the scheme will be available for a while and will make little or no difference to the housing market. The fact is that houses are currently over valued and the housing market will remain stagnant until prices drop to affordable levels

PasturesNew

It'll mean builders can put up prices because those going for the scheme will think they're getting a good deal .... which will hold up non-new-build prices in anticipation/expectation .... and all that will happen is that wealthier people will use the scheme to buy £500-600k houses, rent out their old house, hoping to cash in to repay the loan 5 years later.

It won't help proper house hunters and regular people.

Just toffs really.... and big builders .... and estate agents.

wymondham

hi pastures!

if anyone needed any proof who George wants to help then look at the £600,000 limit. This is shameful.

The Government needs to decide what it is:

If they feel the need to provide social housing, then build council houses - no dodgy deals or banks required - crystal clear where things are.

If they feel a need for people to buy, then just let them get on with it and keep out - the meddling causes confusion and continually makes this process harder for people.

At present the Government seems to want to provide social housing (ie everyone has a right to own according to George!) on the cheap and making an almighty mess of things.....

mystic_trev

wymondham wrote: »

if anyone needed any proof who George wants to help then look at the £600,000 limit. This is shameful.

Can't disagree, I doubt there are many people who can't afford a 20% deposit on a £600,000 home.If they can afford that value House, they can afford the 20% deposit.

In effect, what'll happen is something like this..

Couple buying, or moving to (say) to £500,000 house.

5% deposit and £475,000 mortgage, with the additional 15% interest free Government loan. With the money they've saved i.e. £75,000 they can invest in ISA's etc for the next 5 years. Sorted!

Graham_Devon

Least the policy will work for what was intended then I guess.

Though when do the tories have to take notice of the OBR? Remember, this was a body they set up to reduce risk and introduce higher responsibility.

Seems rather apt that the body they set up is now stating they very plans the tories are putting forward aren't very responsible - will be very difficult for the tories to state that labour were irresponsible soon.

Thrugelmir

mystic_trev wrote: »

Can't disagree, I doubt there are many people who can't afford a 20% deposit on a £600,000 home.If they can afford that value House, they can afford the 20% deposit.

What if house prices fall and equity is wiped out on the existing property?

Without equity enabling people to move then the market will stagnate even more.

shortchanged_2

Thrugelmir wrote: »

What if house prices fall and equity is wiped out on the existing property?

Without equity enabling people to move then the market will stagnate even more.

It's happened in the past Thrug and people got over it, even if some were badly stung.

An unfortunate side effect of a typical UK boom and bust housing market.

the_flying_pig

Mr._Pricklepants wrote: »

Are we reading the same article? Or have you been 'skimming' again.:rotfl:

Firstly, the thread title is not pointless as it's an exact copy and paste of the article title.

Let's continue:












If you need further help with reading, let me know.:)

Don't be ridiculous.

OF COURSE pumping credit in tends to push prices up (tho whether by £10 or £10k we can't say).

Everyone knows this.

The real question is whether the policy would have any benefits as a side-effect. Darling and the OBR chap suggested maybe not.

smamst

SAVING_IS_DEAD_MONEY wrote: »

Clear BUY signals. Get out off cash while you stool can before they steal it from you anyway. Invest in BRICK SAND MORTOR.

Stool can? Jeez don't fancy chucking that one around when the HPC continues.

moneyinmypocket

House prices will rise no doubt, looking forward to it. I hope they sky rocket and I get richer cha Ching