Help to buy now advertised nationally on TV

Graham_Devon

wotsthat wrote: »

So far it's a win win - the early adopters are in the money and the taxpayer, depending on running costs, is sat on a paper gain. Some new houses built too.

Though you must remember prices are around 20k higher on new builds since the government announce help to buy.

So while they may be able to get a house easier, they are paying a lot more than they may have otherwise done.

CLAPTON

Graham_Devon wrote: »

Though you must remember prices are around 20k higher on new builds since the government announce help to buy.

So while they may be able to get a house easier, they are paying a lot more than they may have otherwise done.

yes increased demand does tend to increase price.


what would you prefer : depressed prices, little house building and poor demand due to artificial mortgage constraints


or reasonable prices and more houses and normal prices

ukcarper

Graham_Devon wrote: »

Though you must remember prices are around 20k higher on new builds since the government announce help to buy.

So while they may be able to get a house easier, they are paying a lot more than they may have otherwise done.

Where do you get £20k from according to Nationwide average new build prices increase by £10k between q4 2012 and q4 2013.

wotsthat

Graham_Devon wrote: »

Though you must remember prices are around 20k higher on new builds since the government announce help to buy.

So while they may be able to get a house easier, they are paying a lot more than they may have otherwise done.

Yes - so far it's been a win win for early adopters and taxpayer. At some point there will be a bust/ correction/ crash - help to buy will be a distant memory by that point.

The government tacitly suppressed prices by supporting mortgage rationing and being slow to change planning permission rules. Then just as the economy starts to recover in earnest they come up with a scheme where that pent up demand can be harnessed to taxpayer benefit. It's the socialisation of gains from private home ownership.

I'd call it brilliance but I then have to remind myself of the pasty tax.

Help to Buy has a shelf life but, even so, the booty for the taxpayer will be limited because there will come a point when it's cheaper for a buyer to buy outside of the scheme. Further improvements in the economy, more competition in the mortgage market, and being able to get better discounts by not being a HTB buyer will ensure that plenty of people continue to buy without it. It'll get increasingly niche.

Percy1983

CLAPTON wrote: »

yes increased demand does tend to increase price.


what would you prefer : depressed prices, little house building and poor demand due to artificial mortgage constraints


or reasonable prices and more houses and normal prices

Where are the artificial mortgage constraints?

I can see some previous artificial mortgage givaways, but don't see anything artificial in sensible lending.

As for the adverts I am not against them as such, its just about raising awareness as there may be many who had no idea and this could help.

As much as I don't agree with the game, you would be a fool not to play it.

MFW_ASAP

Percy1983 wrote: »

I can see some previous artificial mortgage givaways, but don't see anything artificial in sensible lending.

What's your definition of sensible lending?

Percy1983

MFW_ASAP wrote: »

What's your definition of sensible lending?

More or less what it is now, you need a small deposit (5-10%) and a reasonable credit file, things anybody are capable of.

MFW_ASAP

Percy1983 wrote: »

More or less what it is now, you need a small deposit (5-10%) and a reasonable credit file, things anybody are capable of.

Is that not pretty much what we've always had?

CLAPTON

MFW_ASAP wrote: »

Is that not pretty much what we've always had?

yes, before the financial meltdown


and


no, after 2008

chucky

Graham_Devon wrote: »

This is why so many are worried about the effects on the market when HTB is pulled. If HTB is helping increase prices, the removal of it could see prices fall, and therefore, the taxpayer could be significantly out of pocket.

You do realise that the definition of the word "could" is used to express the possibility of something happening...

If house prices didn't drop and rose would you have a problem with Help to Buy?