Government should help those without bank of mum and dad

Graham_Devon

Should the government step in to those who cannot access funds from parents (or families, I guess) to raise a deposit on a house?

Say it was the next step of help to buy, as the complaint is this still requires a deposit and helps those who can access the BOMAD for the 5% deposit, leaving those who can't unable to make use of the scheme.

The aim would be to bring a level playing field to the housing market for FTBs.

The monetry help would be returned on sale of the house.

the_flying_pig

possibly, tho imo the priority should be to help relatively badly off people get into BTL. that'd be the true leveller.

BobQ

Graham_Devon wrote: »

Should the government step in to those who cannot access funds from parents (or families, I guess) to raise a deposit on a house?

Say it was the next step of help to buy, as the complaint is this still requires a deposit and helps those who can access the BOMAD for the 5% deposit, leaving those who can't unable to make use of the scheme.

The aim would be to bring a level playing field to the housing market for FTBs.

The monetry help would be returned on sale of the house.

Even if it was a good idea how could it work? Its clear cut if someone does not have any parents. But what if parents cannot afford to help? Or who refuse to help? Or couples where one has a parent that can help and the other does not?

I am sure that the parents who could afford and would help would soon develop reasons why they could not help if it meant their offspring getting some Government help.

You posted a story last week about the recent NAO report explaining that the Government had no idea how much HTB is going to cost, in fact it had a chance on present value calculations of costing the taxpayer over the next 20 years. Would this be any different?

prowla

No, the government should not help people get a deposit.
People do not have a right to own their house; renting is perfectly acceptable.

wotsthat

Graham_Devon wrote: »

Say it was the next step of help to buy, as the complaint is this still requires a deposit and helps those who can access the BOMAD for the 5% deposit, leaving those who can't unable to make use of the scheme.

The recent NAO report highlighted the increase in new supply and, tentatively, indicated that this may prove to good value. As time goes by and more robust costings become available it may be decided that it's worth extending the scheme further to help deal with the housing shortgage.

It'll have to be a cracking deal though - as the economy recovers FTB's will be able to find a more cost effective way to buy a house i.e. HTB will look like an expensive way to buy a house.

mayonnaise

Graham_Devon wrote: »

Should the government step in to those who cannot access funds from parents (or families, I guess) to raise a deposit on a house?

No it shouldn't

Help to Buy was meant to help hard working families - who can afford the mortgage, but not a huge deposit - on the housing ladder.

If one can't even gather 5%, one should save a bit longer.

roddydogs

Where do you think "The Govenment" gets its money?

Perelandra

Yes it should.


But only via building more social housing, which could eventually be sold under the RTB scheme- at a price sufficient to raise the funds to build more social housing at net neutral (or better) cost to the tax payer.

chucky

wotsthat wrote: »

It'll have to be a cracking deal though - as the economy recovers FTB's will be able to find a more cost effective way to buy a house i.e. HTB will look like an expensive way to buy a house.

That's when the usual suspects will say the opposite and say that HTB is a good idea.

wymondham

It's not a Government backed right to own a house now is it? I can see people going to the Human Rights courts to get compensation if they can't buy soon!


I look at this differently. Instead of further supporting the housing market, maybe it should be made illegal for mum and dad to help at all? After all mum and dad are only helping due to the silly prices and hence silly deposits asked?


If buying a house you have to have raised the funds yourself. This way many won't be able to, so the price is forced down?

N1AK

Graham_Devon wrote: »

Say it was the next step of help to buy, as the complaint is this still requires a deposit and helps those who can access the BOMAD for the 5% deposit, leaving those who can't unable to make use of the scheme.

The aim would be to bring a level playing field to the housing market for FTBs.

What's the issue it is intended to solve? Is there evidence out there that there is a real problem with people being able to save the 5% deposit required to buy with HTB without assistance from relatives?

I wouldn't think mortgage lenders would be overly keen to lend to people who have shown no evidence that can acquire even 5% of the property value. I would expect someone being bankrolled by parents is probably less likely to default than someone who has to borrow from government.