Tories say they'll build lots of houses and sell them at a discount to FTB

chewmylegoff

http://www.bbc.co.uk/news/uk-politics-29387866

Presumably he means 100,000 over 5 years rather than 100,000 a year which is a shame. I expect the discount element will enrage some people. I'm not sure how you discount the price of a house. What if someone offers more?

CLAPTON

It's up to 100,000 over the next parliament so that's 'up to' 20,000 per year on 'brown field' sites without the 'affordable ' housing requirement.


guardians take on it
http://www.theguardian.com/society/2014/sep/27/housing-new-builds-100000-tories-david-cameron-election


amazingly it says that 'brown field site' aren't normally available for house building : over 99% of London house building is on brown field sites

BobQ

LIke the Help to buy it will probably mean lots of people who can afford to buy will take advantage of the subsidy.

The scheme only applies to England.

Edit - How much cheaper could ordinary new housing be if it was exempt from building social housing in the development?

BobQ

CLAPTON wrote: »

It's up to 100,000 over the next parliament so that's 'up to' 20,000 per year on 'brown field' sites without the 'affordable ' housing requirement.


guardians take on it
http://www.theguardian.com/society/2014/sep/27/housing-new-builds-100000-tories-david-cameron-election


amazingly it says that 'brown field site' aren't normally available for house building : over 99% of London house building is on brown field sites

20000 housesa year does not seem a lot to address the housing crisis.

CLAPTON

The details are as usual unclear:
there doesn't actually seem to be a subsidy as such : it's just that commercial development land is usually cheaper than residential zoned land and there will be no section 106 costs and apparently global warming isn't a problem anymore so the 'zero carbon' requirement is suspended.


So basically builders will get cheap land (because landlords will obviously sell it cheaply) and obviously builders will sell the finished product more cheaply.

Thrugelmir

chewmylegoff wrote: »

I'm not sure how you discount the price of a house.

By making it financially viable to redevelop brownfield sites. Given the scarce land resource a sensible proposal.

chewmylegoff

Thrugelmir wrote: »

By making it financially viable to redevelop brownfield sites. Given the scarce land resource a sensible proposal.

Yes, but if there are 10 people who want to buy it, won't the price it sells for end up being the same as any comparable property that isn't discounted. When you're buying a house you're not interested in how much it cost to build.

I suppose you could give cashback, but then people would be prepared to pay more for it...

CLAPTON

Thrugelmir wrote: »

By making it financially viable to redevelop brownfield sites. Given the scarce land resource a sensible proposal.

there doesn't seem to be any subsidy to develop drown field sites except the government will withdraw the BAN on building houses on commercial zoned land and withdraw the absurd 'affordable ' housing requirement.


so just a small change in the planning rules : no guarantee the price will drop.

antrobus

Tories say they'll build lots of houses and sell them at a discount to FTB?

Is there an election coming up any time soon or something?

HAMISH_MCTAVISH

antrobus wrote: »

Is there an election coming up any time soon or something?

There must be.

Now they're also offering cheap rent to young people so they can save up for deposits.

Young workers will get guaranteed cheap rent to allow them to save a deposit for their first home under another new Tory scheme.

The ‘rent to buy’ programme will offer first-time buyers a 20 per cent discount off their rent for seven years.

They will then be given the right to buy the home.

http://www.dailymail.co.uk/news/article-2771380/20-cent-home-Tories-offer-time-buyers-40-special-discount.html#ixzz3EVvIcdmm

Honestly, this nonsense is getting out of hand, it's like something out of 'Yes Minister'.

- Government has knee jerk reaction to global financial crisis and implements overly strict new mortgage lending rules to 'fix' a non-problem as UK mortgage lending wasn't the cause to begin with..

- Government later realises those onerous new rules restrict sensible, prudent and historically normal mortgage lending and prevents millions of people from buying.

-Government then implements various new schemes to bypass the new lending rules which are preventing millions of people from buying as the situation has become politically unsustainable.

For heavens sake, just admit you were wrong, lift the lending restrictions, and get lending back to normal....

All this tinkering around the edges simply will not work.

Carl31

if they can do it then , why dont they do it now?

Obviously i know the answer to that, but just goes to show how stupid the governing of this country is

I am really starting to think about voting UKIP, for no other reason than I am getting fed up with the repeated BS that the other parties keep churning out - none of them ever get it right, too many vested interests