The government will now GIVE you 20% of your deposit

Graham_Devon

Clifford_Pope wrote: »

In a free market economy high prices of something indicate
a) that that commodity is greatly in demand
b) that there is insufficient supply
c) that there should be a stimulus for entrepreneurs to supply that demand.

High prices are therefore a good thing in pointing the way towards the solution - more and cheaper houses in the areas of greatest demand.

Is the housing market a free market?

I don't think I could class it as such. Housing benefits. SMI. HTB. FFL. Building restrictions. Instructions from the government to halt repossessions. The very policy on this thread. etc etc

Andy_L

ViolaLass wrote: »

That midwife might not be a midwife for life.

and would have to have a BSc in Midwifery as well

Loughton_Monkey

Graham_Devon wrote: »

Is the housing market a free market?

I don't think I could class it as such. Housing benefits. SMI. HTB. FFL. Building restrictions. Instructions from the government to halt repossessions. The very policy on this thread. etc etc

Free Market: an economic system in which prices and wages are determined by unrestricted competition between businesses, without government regulation or fear of monopolies.

The true 'free market' ceased to exist a long time ago. Even before the issues you raise above, there have always been building regulations and planning controls.

Despite that, we should be cheered by Persimmon's 2014 report that shows them starting to make a decent return. I'm sure they'll wish to continue whilst there is a crumb or two to be made from the homeless.

The Group aims to maximise the value of each new home sold whilst controlling development costs to deliver the best gross margin from each site. Underlying gross margins increased to 22.2% (2013: 20.2%), resulting from the combination of reduced land costs, strong control over development costs and improved efficiencies from increased build production. Underlying operating margin for the year was 18.4% (2013: 16.0%).

Underlying operating profits increased 42% year on year to £473m (2013: £333m) and the Group delivered a 44% increase in underlying profit before tax* to £475m (2013: £330m). Underlying basic earnings per share* of 124.5 pence was 49% higher than last year’s 83.3 pence.

But the minute houses start falling, they will be mothballing their trowels faster than you can say "Anti-business Labour will introduce mansion tax and screw up the economy"

Absolut1on

This sounded brilliant to me until I read all the clauses.

A max of £3,000 paid out, while taking 4.6 years to save the necessary £12,000? (Although my wife can also open an account thereby doubling the amount to £6,000)

But it can only be used on houses up to £250,000? I wonder how many politicians have noticed the average house prices in the south recenty.

My local "Help to Buy" developments in Horsham are just now advertising new 2 bed houses for £300,000.

It's a good idea that doesn't actually help as many as they like to pretend!

wotsthat

Absolut1on wrote: »

This sounded brilliant to me until I read all the clauses.

A max of £3,000 paid out, while taking 4.6 years to save the necessary £12,000? (Although my wife can also open an account thereby doubling the amount to £6,000)

But it can only be used on houses up to £250,000? I wonder how many politicians have noticed the average house prices in the south recenty.

My local "Help to Buy" developments in Horsham are just now advertising new 2 bed houses for £300,000.

It's a good idea that doesn't actually help as many as they like to pretend!

That's the trouble with the UK. The free money takes too long to get and there's not enough of it.